Anticipated 360% surge in BNB value by 2028, according to Standard Chartered's predictions
Cryptocurrency Chaos: The Soaring Future of Binance's Token BNB
Analysts at Standard Chartered predict an astounding 360% surge in the price of Binance's token, BNB, by the end of 2028. With the current price hovering around $600, the analysts foresee a meteoric rise, reaching an astronomical $2775. This incredible growth is based on the calculations of Jeffrey Kendrick, head of digital asset research at Standard Chartered, as reported by The Block.
According to Kendrick, "BNB has traded nearly in line with an unweighted basket of bitcoin and Ethereum in terms of both performance and volatility. We expect this correlation to continue and for the price of BNB to rise from its current $600 to $2775 by the end of 2028." An unweighted basket consists of assets with equal weight, regardless of their prices, while a weighted basket occupies shares proportional to the prices of the assets.
As of May 7, BNB ranks fifth among the largest cryptocurrencies, boasting a market capitalization of $88 billion. In early December 2024, the token reached a record high of approximately $788. Analysts at Standard Chartered consider BNB to be a benchmark asset in the cryptocurrency market, making it an attractive investment.
BNB's Lasting Appeal
BNB's deflationary nature and strong connection to Binance support its long-term value and demand, according to the analyst. Binance uses token burning mechanisms to reduce the overall supply, creating a deflationary effect that supports the cryptocurrency's price. The exchange destroys part of BNB spent as fees on Binance Smart Chain, as well as conducting quarterly burns.
Furthermore, token holders on Binance receive trading fee discounts, making BNB an attractive asset among users. This has helped BNB Chain maintain activity despite growing competition from other ecosystems, like Solana.
Consensus and Centralization
BNB Chain operates on a consensus model called proof of staked authority, where only 45 validators are selected every 24 hours based on the number of tokens they have staked. This makes BNB Chain much more centralized than blockchains like Ethereum that have over 1 million validators. However, updates like the recent Pascal and upcoming Maxwell can increase developer activity on BNB Chain over time.
Although the centralized structure and limited development activity on BNB Chain may have negative consequences, the token's strong connection to Binance ensures it remains in high demand among users. In fact, former Binance CEO, Changpeng Zhao, was appointed an advisor on cryptocurrencies by the Kyrgyz government in early May, recommending the inclusion of bitcoin and BNB as the first cryptocurrencies for forming a national crypto reserve.
Factors Fueling BNB's Growth
Several factors contribute to the sustained demand and long-term value appreciation of Binance Coin (BNB):
1. Expansion of Binance and its Ecosystem- The continued growth of the Binance exchange and its suite of services, including trading, staking, and decentralized finance (DeFi) offerings, supports BNB's utility and demand.- Binance operates two blockchains, providing users with fast, low-cost transactions and helping mitigate the congestion issues experienced by other networks like Ethereum.
2. Tokenomics and Scarcity- Binance allocates about 20% of its quarterly profits to buy back and permanently burn BNB tokens, reducing the supply and supporting price increases through scarcity.- BNB is used for transaction fee discounts, participation in token sales, and as a payment method within the Binance ecosystem, further driving demand.
3. On-chain Activity- Analysts monitor indicators such as active addresses, transaction volume, and gas consumption. Rising activity in DeFi, NFTs, and payments on the Binance Smart Chain indicate growing user adoption and ecosystem health, which correlate with price appreciation.- Increases in daily active addresses and transaction volume suggest growing user adoption and ecosystem vitality, historically contributing to higher prices.
4. Regulatory Developments- Progress toward more crypto-friendly regulations, particularly in major markets, reduces uncertainty and boosts institutional and retail confidence in BNB.- Regulatory ease or settlements can address the uncertainty surrounding Binance, potentially supporting the long-term value of BNB.
5. Market Trends and Network Updates- BNB often benefits from general crypto market rallies, especially as Bitcoin and other major assets appreciate.- Ongoing updates to Binance Smart Chain, such as scalability enhancements and new features, can attract more developers and users, bolstering demand.
The Future of BNB
With continued expansion of Binance's ecosystem, effective tokenomics, robust on-chain activity, and favorable regulatory developments, BNB is poised to maintain high demand and long-term value potential. As the fifth-largest cryptocurrency, BNB stands to benefit from trends within the overall crypto market and updates to its blockchain.
- By the end of 2028, Standard Chartered analysts predict a 360% surge in the price of Binance's token, BNB, reaching an astronomical $2775.
- According to Standard Chartered's digital asset research head, Jeffrey Kendrick, BNB has traded nearly in line with an unweighted basket of bitcoin and Ethereum in terms of both performance and volatility.
- Binance Coin (BNB) benefits from its deflationary nature and strong connection to Binance, with the exchange destroying part of BNB spent as fees on Binance Smart Chain and conducting quarterly burns.
- The ongoing expansion of Binance's ecosystem, effective tokenomics, robust on-chain activity, and favorable regulatory developments position BNB as a cryptocurrency with high demand and long-term value potential.
