Key Takeaways

• Binance is the world’s largest crypto exchange and BNB is its native coin.
• BNB collapsed after reports that it had restricted withdrawals and deposits in the EU.
• The United States Securities and Exchange Commission (SEC) filed a court case against Binance, claiming that it has traded in unregistered securities among 12 other charges.
• A Binance price prediction says BNB could reach $530.47 in 2025.

Binance’s BNB coin crashed to a yearly low after issues with a payment system saw it tell customers it had restricted deposits and withdrawals. in the European Union (EU).

A Binance tweet said that there were problems with Single Euro Payments Area (SEPA) transfers.

Binance deleted the Tweet and business resumed as normal. The exchange also pointed out it would be ceasing using SEPA next month.

A spokesperson for Binance told CCN.com: “The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. As we approach that date, some users may occasionally be asked for more information as part of routine compliance checks, which could lead to early closure of their accounts. We apologize for the inconvenience and it is important to note that we will have alternatives for our users in place before the end of the SEPA service.”

SEC vs Binance

August 20’s news came as the platform faced legal action from the United States Securities and Exchange Commission (SEC). The regulator announced it was suing Binance in June, claiming the exchange’s US arm transferred customer funds to corporate accounts controlled by founder Changpeng “CZ” Zhao. It also accused Binance in selling unregistered securities, along with 11 other charges.

The collapse of the FTX (FTT) exchange in late 2022 saw Binance become, by quite some margin, the largest cryptocurrency exchange. Founded in 2017, the site has consistently enjoyed daily trading volumes in the billions of dollars. Regulators have had the exchange, which was effectively banned in the United Kingdom in 2021, in their sites of regulators for some years now.

On 5 June 2023, the announced that it was suing Binance, claiming that its US arm, Binance.US, transferred customer funds to corporate accounts controlled by Zhao,and that it sold unregistered securities,  among 11 other charges. In a statement , Binance denied the claims, saying they were “misguided”. 

That said, there is some potential hope ahead. The exchange asked for a case filed by the United States Commodity Futures Trading Commission (CFTC) to be dismissed by an American court. It remains to be seen what the court says.

But what is Binance (BNB)? How does Binance work? Let’s see if we can answer those questions and also take a look at some of the Binance price predictions that were being made as of August 22 2023. 

Binance Coin Price Prediction 

Let’s examine some of the Binance price predictions being made on August 22 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.

 

CoinCodex  had a short-term Binance price prediction for 2023 which suggested that a proper recovery was on its way. It said the coin would reach $233.92 by August 27 and then shoot up to $502.03 on September 21, However, despite the hopes of some kind of recovery, the site’s technical analysis remained bearish. It showed 29 indicators sending discouraging signals compared to just four making bullish ones. 

Binance Price Prediction for 2023

CaptainAltCoin  suggested Binance would fall to $194.29 in December. DigitalCoinPrice  argued that BNB would shake off its recent poor performance to trade at $450.18. On the other hand, CryptoPredictions.com  was a bit more cautious in its optimism, suggesting it could close the year at $212.11.  

Binance Price Prediction for 2025

CaptainAltCoin saw BNB emerge from its current predicament to trade at $530.47. CryptoPredictions.com, meanwhile, said it would fall, closing the year at $199.36. DigitalCoinPrice, argued that the Binance coin could trade at $709.45 that year. 

Binance Price Prediction for 2030

Let’s look at some long-term Binance price predictions. DigitalCoinPrice, which said BNB could break through the $1,000 mark in 2026, made a Binance price prediction for 2030 of $2,170.63. CaptainAltCoin also saw the coin passing the $1,000 barrier, trading at $1,326.18. PricePrediction.net  was even more optimistic, claiming the coin would be worth $4,373.54.

Binance Price Analysis

Binance coin has been one of the worst-performing cryptos among the high market cap coins in recent months, falling to the sort of lows it experienced in June 2022.

At present, it is hovering at a little over $205. We will have to see if it can bounce back or if it will fall below that level. 

BNB has fallen about 40% since April. On one hand, it is still more than 10% above its low of June 2022. Not only that, but the Relative Strength Index indicator suggests that it was oversold on August 18.

On the other hand, it could be that Binance is in a downward trend wave, which could see the price drop below $200. If it falls below $198, then worse could be to come. 

Advantages and Disadvantages of Binance 

Blockchain analytics company Messari recently released its quarterly report on the Binance coin . It highlighted that the Binance blockchain hosted the third-largest stablecoin collection by market cap, and outlined some key advantages and disadvantages of the blockchain.

It reported that Binance had

• 1.3 million average active daily addresses, up from a little over one million both year-on-year and quarter-on-quarter.
• Four million average daily transactions, down from 4.6 million year-on-year but up from 3.2 million quarter-on-quarter.
• An average market cap of $37.5 billion, up year-on-year from $35.2 billion but down quarter-on-quarter from $50.1.
• Quarterly revenue of $52.2 million, down $111.9 million the previous year and down from $56.9 million the previous quarter.

Advantages of Binance

Messari found that Binance

• Was able to grow its customer base despite uncertainty.
• Worked on increasing the amount of staking options available on the platform.
• Had a “robust” decentralized finance (DeFi) ecosystem and was working well on growing the network.

Disadvantages of Binance

Messari also found that Binance

• Was struggling after the SEC’s legal action.
• Had most of its hosted DeFi protocols Total Value Locked (TVL) drop over the course of the quarter.
• Reduced its gas fees due to market pressure, which suggested it needed to keep competitive.

With Messari’s report being broadly positive about Binance, what does this mean about the BNB price prediction? First, though, let’s look at how BNB has performed. 

BNB Price History

Let’s cast our eyes over the Binance price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done can help us when it comes to either making or interpreting a Binance price prediction.

What was then known as BSC was worth about $0.10 first came onto the open market in the summer of 2017. It rose above the dollar later that year and $10 the following year. Things really started to get interesting in 2021. The crypto market boomed and Binance skyrocketed, hitting an all-time high of $690.93 on May 10. A variety of factors, not least Binance’s own UK ban, saw the price drop over the year, but it still managed to close 2021 at around $500. 

In 2022, though, things got bad for both crypto and Binance. The coin suffered through the collapse of the Terra (LUNC)  blockchain and FTX’s bankruptcy, not to mention an SEC investigation into claims BNB was an unlicensed security, and it closed the year at $246.45. 

BNB in 2023

So far, 2023 has been somewhat better, with BNB reaching a high of $350.07 on April 17. After that, though, it settled down and the slump became a crash following the SEC lawsuit.

It reached a low of $222.07 on June 12. In the weeks after that, it made a small, but underwhelming, recovery, reaching $248.51 on August 2. However, the confusion over SEPA saw the coin collapse and, on August 22 2023, BNB was worth about $210. 

At that time, there were about 153.8 million BNB in circulation, representing the total supply. This gave the coin a market cap of about $32.3 billion, making it the fourth-largest crypto by that measurement.

Is Binance a Good Investment?

It is difficult to tell. The Binance exchange is no stranger to controversy, but it is likely that the SEC’s lawsuit will end up being a very long, drawn-out process. While it is always possible that the SEC could drop the charges, or Binance emerge victorious, things will take time. There will, at least in the near-future, be a dark cloud hanging over the prospects of the BNB coin.

The confusion about its status in the EU will not help matters, either.

On the other hand, markets have proven to be resilient, and it is not impossible to think that the crypto could make something of a recovery at some point, although we do not know when that might be. 

As always with crypto, you will need to do your own research before deciding whether or not to invest in BNB. 

Will Binance go up or down?

No one can really tell right now. A lot of sites are incredibly bullish in the long-term. Those sites, like most price predictions, very often end up being wrong. Remember, too, that prices can, and do, go down as well as up. 

Should I invest in Binance?

Before you invest in Binance, you must make sure to do your own research, not only on BNB but on other coins and tokens linked to cryptocurrency exchanges, such as Crypto.com’s Cronos (CRO) coin. Ultimately, though, you will have to make this decision for yourself. Just remember to never invest more money than you can afford to lose.  

From the Whitepaper

In its technical documentation, or whitepaper , Binance says that it was designed to solve the technical limitations, security issues and token availability issues that plagued exchanges when it came out. 

As far as the Binance’s BNB coin goes, the whitepaper said: “We will issue our token coin, called the Binance Coin. A strict limit of 200MM BNB will be created, never to be increased. BNB will run natively on the Ethereum (ETH) blockchain.”

It is worth pointing out that, in 2019, Binance launched its own blockchain and moved BNB onto it.

Binance (BNB) Explained

The Binance cryptocurrency was originally launched in 2017. Initially, it was a token based on the Ethereum blockchain but, in 2019, it migrated to its own blockchain, the Binance Smart Chain. This, in turn, was rebranded as the BNB Chain in February 2022.

The idea behind the BNB chain is that it serves as a support to not only the exchange, but also the entire Binance online ecosystem, which includes the Binance Wallet, Binance Academy training program, the Binance launchpad, which helps people create their own decentralized applications, and its own research project. 

The BNB coin pays for fees on the network, and people can buy, sell, and trade it on exchanges. Holders can also vote on proposals regarding the network’s future. They can also stake it in return for rewards. 

How Binance Works

Something that sets BNB apart from other cryptos is that it has a strong burning program. Binance destroys a certain amount of the coin every three months or so. The ultimate aim is to burn 100 million BNB, or around half the maximum supply. The last  automated burning took place in the second quarter of 2023, with nearly two million BNB destroyed. 

Binance’s blockchain uses something called a Proof of Staked Authority. This involves people staking their BNB in the hope of being allowed to add blocks to the blockchain and earn rewards for doing so. Binance itself chooses the successful validators.

FAQs 

How many Binance coins are there?

On August 22 2023, the total supply of 153.8 billion BNB was in circulation. 

Will Binance reach $1,000?

It could do. DigitalCoinPrice, for instance, thinks it could break through that barrier in 2026. It is important to remember that price predictions are very often wrong, though, and a lot will depend on what happens with the SEC court case. 

Is BNB a stablecoin?

No, it is not, although Binance does have a stablecoin, called Binance USD (BUSD). 

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.