It’s been a wild year for investments with both traditional and digital assets taking a beating. However, much of the coverage is focused on how poorly the crypto space is performing, with pundits throwing around terms like “crypto crash.”
Although the market is definitely experiencing a downturn, the world isn’t ending. At least, not according to the panel of experts who gave forecasts as part of Finder’s Cryptocurrency Price Predictions Report.
Take Binance Coin (BNB) — the token that you use to facilitate exchanges on Binance as well as the native asset of the Binance Smart Chain — for example. The panel expects BNB to close out 2022 with $274. While that’s a far cry from its all-time high (ATH) of $686 in March of 2021, the panel expects big things for the coin going forward.
By 2025, the panel says that BNB could be seeing new ATHs, and they predict it will close out 2025 with $781. Casting their eyes toward the end of the decade, they see the price of BNB surging to $1,814 by the end of 2030.
BNB vs. S&P: Let’s throw $100 down
So what does that mean for people looking to buy BNB?
If BNB is to hit $1,814 in 2030, that would be a 615% increase in its current value of $254 at the time of writing. That means if you threw down $100 on BNB at its current price you’d be looking at that $100 being worth about $715.
That’s a fairly decent return, especially when you compare it with traditional investments.
If you’d invested in an S&P 500 ETF over the last eight years, your money would’ve grown about 94%. Nothing to sneeze at, but if we look at it in context of that same $100 investment, you’d be looking at taking home $194.
From the ashes, BNB rises
One of the major points of difference BNB has over other coins is that it’s a deflationary asset. When BNB started out, 200 million BNB were in circulation. BNB’s quarterly burn mechanism — where Binance destroys a percentage of Binance Coin — reduces the amount of BNB in circulation. By the end of 2022, it’s expected that there will be 100 million BNB.
When speaking with Finder, Digital Capital Management managing director Ben Ritchie said that Binance Coin coin has a bright future, in part due to BNB being a deflationary asset: “The price of BNB also follows the demand and supply. BNB introduced a burn mechanism in every transaction fee and conducted quarterly burns, making it a deflationary asset. Since the BNB chain ecosystem continues to grow, the price may reach as high as $3,000 in 2030.”
Is BNB guaranteed to see its value go up? No. However, BNB does stand a good chance of hanging around, if only for its ties to Binance and the fact that it’s a deflationary asset like Bitcoin (BTC).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Read More:What to Expect From Binance Coin Over the Next Decade