Asset manager Standard Chartered has issued a bullish forecast for Binance’s BNB token, predicting significant price appreciation in the coming years. According to a research report, BNB could reach approximately $1,275 by the end of 2025 and potentially surge to $2,775 by the end of 2028. This prediction is rooted in BNB’s historical performance relative to Bitcoin and Ethereum, as well as the expectation that Binance will maintain its leading position in the cryptocurrency exchange landscape.
As of May 6, BNB is trading around $600, with a fully diluted value (FDV) of approximately $84 billion, according to CoinMarketCap data. Standard Chartered analyst Geoff Kendrick notes that BNB has closely tracked the performance of an unweighted basket of Bitcoin and Ethereum since May 2021, both in terms of returns and volatility.
Kendrick believes this relationship will continue to hold, driving BNB’s price upwards from its current level to the projected $2,775 by the end of 2028.
BNB Chain and Its Ecosystem
BNB is the native cryptocurrency of the Binance BNB Chain, a layer-1 (L1) blockchain network associated with Binance, the world’s largest centralized exchange (CEX). While the BNB Chain has seen less developer activity compared to other L1s like Ethereum or Avalanche, and its ecosystem is considered relatively “old-fashioned,” Standard Chartered suggests this could be a source of stability.
Currently, over 60% of the BNB Chain’s on-chain economic activity is related to decentralized exchanges (DEXs), a higher concentration compared to the more diverse activity seen on other L1 blockchains.
The asset manager emphasizes that Binance’s continued dominance as a major CEX will likely maintain BNB’s value drivers, positioning it as a potential benchmark for digital asset prices.
The BNB Chain currently ranks as the fourth largest L1 blockchain, with nearly $6 million in total value locked (TVL), according to data from DeFiLlama.
VanEck’s BNB ETF Filing
Adding to the positive sentiment surrounding BNB, asset manager VanEck recently filed to list the first BNB exchange-traded fund (ETF) in the United States. This move could provide greater accessibility and exposure to BNB for a wider range of investors.
Key Takeaways and Analysis
- Price Prediction: Standard Chartered predicts BNB to reach $1,275 by 2025 and $2,775 by 2028.
- Correlation with BTC and ETH: BNB’s price is closely linked to Bitcoin and Ethereum’s performance.
- Binance’s Dominance: The prediction relies on Binance remaining a leading cryptocurrency exchange.
- BNB Chain Ecosystem: Predominantly focused on DEXs, offering potential stability.
- VanEck ETF Filing: Could increase accessibility to BNB for investors.
Factors Influencing BNB’s Price
Several factors could influence BNB’s future price performance. These include:
- Overall Cryptocurrency Market Trends: BNB’s price is influenced by the broader sentiment and trends within the cryptocurrency market. Positive market conditions could drive demand for BNB, while negative trends could lead to price declines.
- Binance’s Performance and Reputation: As the native token of the Binance ecosystem, BNB’s price is directly tied to the success and reputation of the exchange. Any regulatory challenges, security breaches, or negative news surrounding Binance could negatively impact BNB’s price.
- Adoption and Usage of BNB Chain: Increased adoption and usage of the BNB Chain for decentralized applications (dApps), decentralized finance (DeFi) protocols, and other use cases could drive demand for BNB and increase its value.
- Competition from Other Layer-1 Blockchains: BNB Chain faces competition from other layer-1 blockchains, such as Ethereum, Solana, and Avalanche. The success of these competing platforms could potentially limit the growth of the BNB Chain and impact BNB’s price.
- Regulatory Developments: Regulatory developments in the cryptocurrency industry could have a significant impact on BNB’s price. Supportive regulations could create a more favorable environment for BNB, while restrictive regulations could hinder its growth.
Conclusion
Standard Chartered’s bullish prediction for BNB highlights the potential for significant price appreciation in the coming years. However, investors should carefully consider the risks and factors that could influence BNB’s performance before making any investment decisions. The cryptocurrency market is inherently volatile, and there is no guarantee that BNB will reach the predicted price targets.
