In an era where cryptocurrencies continue to captivate the financial world, Standard Chartered’s recent prediction regarding Binance’s ecosystem token, BNB, stands out. According to an analyst report reviewed by Cointelegraph, Standard Chartered anticipates that BNB could more than double in price over the next few years. This forecast highlights the dynamic landscape of digital currencies and the potential for significant investment opportunities.
As of May 6, BNB is trading at nearly $600 per token, with a fully diluted valuation of about $84 billion, as per data from CoinMarketCap. Standard Chartered’s report suggests that BNB could climb to approximately $1,275 by the end of 2025 and potentially reach as high as $2,775 by the conclusion of 2028.
Geoff Kendrick, an analyst at Standard Chartered, pointed out that BNB has historically traded in line with an unweighted basket of Bitcoin and Ethereum since May 2021, in terms of returns and volatility. Kendrick expressed confidence that this trend will continue, driving BNB’s price upwards.
Understanding the BNB Ecosystem
The BNB token serves as the native cryptocurrency of the Binance BNB Chain, a layer-1 (L1) blockchain network associated with the world’s largest centralized exchange. However, Standard Chartered’s report characterizes the BNB Chain’s ecosystem as comparatively “old-fashioned” due to its lower developer activity relative to other L1s like Ethereum or Avalanche.
Interestingly, more than 60% of the BNB Chain’s on-chain economic activity is attributed to decentralized exchanges (DEXs). Despite the lack of diversity in its ecosystem, this characteristic could provide stability for the BNB Chain’s future.
Kendrick noted that as long as Binance remains a major player in the centralized exchange market, the value drivers for BNB are not likely to change significantly. This stability allows for the potential of BNB to act as a benchmark for digital asset prices more broadly.
Currently, BNB Chain holds the position as the fourth largest layer-1 blockchain, with a total value locked (TVL) nearing $6 million, according to data from DeFiLlama. Additionally, the financial landscape is evolving as asset manager VanEck recently filed to list the first BNB exchange-traded fund (ETF) in the United States.
As the cryptocurrency space continues to evolve, keeping an eye on the developments surrounding BNB and its ecosystem will be crucial for investors and enthusiasts alike. The forecasts from Standard Chartered provide a glimpse into the potential trajectory for BNB and the broader implications for the cryptocurrency market.
