Binance’s native $BNB cryptocurrency is currently navigating the fallout from the company’s settlement with the U.S. Department of Justice.
The largest cryptocurrency exchange announced that it would pay $4billion in penalties and its CEO Changpeng ‘CZ’ Zhao would step down from his position.
BNB is down 9% in the past 24 hours, off the back of this news. Binance price predictions are mixed on whether a recovery is possible.
What is BNB?
Binance Coin (BNB) is the native crypto of the Binance exchange, the world’s largest cryptocurrency exchange. Launched in July 2017, Binance’s mission was to revolutionise the global financial landscape through cryptocurrency.
The Binance ecosystem has evolved since then and is no longer just limited to its exchange. It encompasses a range of services including the BNB Smart Chain (BSC), Binance Academy, Trust Wallet, and various research projects.
The overarching goal of Binance, as stated on their website, is to serve as an infrastructure provider for the entire blockchain ecosystem.
The BNB Smart Chain
Originally known as the Binance Smart Chain and now rebranded as the BNB Smart Chain, this blockchain network is tailored for smart contract-based applications.
Its primary objective is to enable developers to build decentralized applications (dApps) and help users manage their digital assets efficiently across different blockchains. The BSC boasts high capacity and low latency in transactions.
Despite these unique differences, it is lagging significantly behind its main competitor Ethereum. BSC has a total value locked (TVL) of $3bn making up 6% of the market, while ETH has a TVL of $25bn, a market dominance of 54%.
The largest protocol on the chain is PancakeSwap, an automated market maker (AMM) that makes up almost half of BSC’s TVL.
The BNB cryptocurrency
While initially serving as a utility token for discounted trading fees on the Binance exchange, BNB has grown to encompass a broader range of uses. Its utility extends across various applications and transactions within the Binance ecosystem, including participation in token sales on Binance Launchpad and making in-store payments.
One of the key features of BNB is its regular ‘burn’ events. These are quarterly occurrences where Binance uses a portion of its profits to buy back and permanently destroy, or ‘burn’, BNB tokens. This process is intended to reduce the overall supply of BNB, potentially increasing its scarcity and value over time.
In the wider cryptocurrency landscape, BNB is also used in a variety of dApps on the BSC. Its integration into the decentralised finance (DeFi) sector has been particularly notable, with BNB being used as collateral for loans, yield farming, and liquidity provision in various DeFi platforms.
BNB price history
BNB went live at $0.10 on 29 July 2017 and climbed to the $10 mark in January 2018 along with the wider bull market at the time. It saw steady gains over the following years, climbing above the $30 level in May 2019.
The Binance cryptocurrency saw its most bullish price activity to date in 2021, profiting from the extremely upbeat wider market at the time. In February, it rocketed above $100 and $200, hitting a peak of $294.
BNB continued to gain in the following months, reaching its all-time high of $690.93 on 10 May. It corrected back below the $400 by the end of the month, and dropped to $280 in July.
However, the cryptocurrency did surge again with the wider market at the end of the year. BNB climbed near its previous price record, hitting $654 in November.
BNB eventually crashed back down to the $300 mark in the first quarter of 2022 and to around the $200 level in July. These acted as key support levels for the cryptocurrency. It fluctuated between $200 and $300 for the majority of 2023.
The cryptocurrency did see a sharp decline in June 2023, when the SEC filed 13 different charges against Binance and associated entities for unregistered securities sales. BNB dived to $231 on 13 June.
Recent BNB news
The Binance exchange and its BNB cryptocurrency has recently faced a major blow. After investigating Binance for numerous years over claims of sanctions avoidance and money laundering, the DOJ has announced a settlement with the exchange.
Binance agreed to pay $4bn to end the multi-year investigation. Changpeng ‘CZ’ Zhao, co-founder of Binance and a prominent figure in the crypto space, revealed that he was stepping down from his CEO position at the exchange.
As part of the settlement, Binance admitted to breaking the Bank Secrecy Act and allowing users to evade sanctions.
As of 22 November, BNB was trading at $236, down 9% since the settlement was announced.
BNB price prediction
Binance price predictions are mixed from forecasters after the damaging blow from the DOJ. CoinCodex said there was “bearish” sentiment surrounding the cryptocurrency, with a majority of 19 indicators pointing towards sell, while 12 suggested buy. Its BNB price prediction for 2023 suggested the cryptocurrency would climb to $266 in five days and $515 in a month.
On the other hand, WalletInvestor provided a more pessimistic outlook. Its BNB price prediction for 2024 anticipated the coin to fall to $134 in a year. This downward trend was expected to continue and its BNB crypto price prediction said it would stoop to $120 at the beginning of 2025.
Meanwhile, DigitalCoinPrice gave a bullish forecast with its Binance coin price prediction. It said the cryptocurrency would reach $508 this year and $569 in 2024. Its BNB price prediction for 2025 suggested it would hit $800. By 2030, the Binance crypto price prediction gave a maximum price of $2,490.
Gov Capital anticipated a volatile next few years with its BNB coin price prediction. It said the cryptocurrency would climb to $645 in a year’s time. While it did not give a BNB price prediction for 20230, it said the crypto would stoop back to $474 in five years’ time.
Should I invest in Binance?
It depends. BNB token price predictions are mixed after the recent settlement with the DoJ. CoinCodex said there was “bearish” sentiment, while DigitalCoinPrice anticipated new all-time highs. However, the cryptocurrency market is highly volatile and you should never invest more than you can afford to lose.
Is Binance a good investment?
The Binance cryptocurrency exchange has recently settled with the DoJ after admitting to breaking the Bank Secrecy Act and allowing users to evade sanctions. Investors should be cautious and always conduct thorough due diligence.
Disclaimer: The information provided in this article is for informational and educational purposes only and should not be construed as financial advice. CoinNews and its authors are not financial advisors or experts. We recommend that you consult a professional financial advisor or conduct thorough research before making any investment decisions. Cryptocurrency investments carry a high degree of risk, and you should only invest an amount you are willing to lose. The opinions expressed in this article are those of the author and do not necessarily reflect the views of CoinNews or its affiliates.