Standard Chartered Predicts Massive BNB Price Surge: $1275 by 2025

Get ready for some exciting news if you’re following the crypto market! A major financial institution, Standard Chartered, has released a highly bullish BNB price prediction that could see the token more than double its current value in the near future.

Standard Chartered’s Bold BNB Price Prediction

According to a recent analyst report from Standard Chartered, the native token of Binance’s BNB Chain is poised for significant growth. The report suggests that Binance Coin (BNB) could reach a price of approximately $1,275 per token by the close of 2025. Looking further ahead, the forecast becomes even more optimistic, with a potential price target as high as $2,775 by the end of 2028.

As of early May 2024, BNB was trading near the $600 mark, giving it a fully diluted value (FDV) of roughly $84 billion. This prediction implies a substantial increase from its current standing, capturing the attention of investors and market watchers alike.

Understanding the Binance Coin Context

Binance Coin (BNB) serves as the core utility token for the Binance ecosystem, primarily powering the BNB Chain. This layer-1 (L1) blockchain is closely associated with Binance, the world’s largest centralized cryptocurrency exchange.

BNB has multiple use cases within this ecosystem, including paying for transaction fees on the BNB Chain, trading fee discounts on the Binance exchange, and participation in token sales on the Binance Launchpad. Its value is intricately linked to the activity and success of both the exchange and the blockchain network.

Why Standard Chartered Sees Potential

Geoff Kendrick, an analyst at Standard Chartered, highlighted a key relationship driving their optimistic crypto price forecast for BNB. Kendrick noted that BNB has closely mirrored the performance of an unweighted basket of Bitcoin and Ethereum since May 2021, in terms of both returns and volatility. The expectation is that this correlation will persist.

Kendrick wrote in the research note, “We expect this relationship to continue to hold, driving BNB’s price from around USD 600 currently to USD 2,775 by end-2028.” This suggests that Standard Chartered views BNB’s price trajectory as being significantly influenced by the broader movements of the two largest cryptocurrencies.

Exploring the BNB Chain Ecosystem

The report from Standard Chartered also touched upon the nature of the BNB Chain itself. While acknowledging that the network has less developer activity compared to other prominent L1s like Ethereum or Avalanche and describing its ecosystem as comparatively “old-fashioned,” the analysis points to a source of stability.

A significant portion—over 60%—of the network’s onchain economic activity revolves around decentralized exchanges (DEXs). While other L1s show a more diverse spread of activity, this DEX focus could contribute to the chain’s stability, particularly given its strong ties to Binance. The report posits that as long as Binance remains a leading CEX, BNB’s core value drivers are likely to remain consistent.

The BNB Chain is currently the fourth largest L1 network by total value locked (TVL), holding nearly $6 million according to DeFiLlama data. This indicates a substantial, albeit concentrated, level of activity and capital within its ecosystem.

Factors Influencing the Crypto Price Forecast

Beyond the technical analysis and correlation with BTC/ETH, other external factors could influence the BNB price prediction. Notably, asset manager VanEck recently filed to list the first BNB exchange-traded fund (ETF) in the United States on May 5. While the approval process for such a product is lengthy and uncertain, a successful listing could potentially increase institutional access and demand for BNB.

Standard Chartered’s analysis provides a structured outlook based on observed correlations and the fundamental stability of the BNB ecosystem tied to Binance. However, like all market predictions, it’s subject to the inherent volatility and unpredictable nature of the cryptocurrency market.

In summary, Standard Chartered’s bullish forecast presents a compelling case for potential significant growth in the value of Binance Coin over the next few years, driven by its historical correlation with Bitcoin and Ethereum and the foundational strength of its connection to the world’s largest crypto exchange.