In a recent report, Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, projected that Binance Coin (BNB), the native token of Binance’s Layer-1 blockchain, could reach a new all-time high of $2,775 by the end of 2028, largely supported by BNB’s “consistent trading correlation” with major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH).
Dominance In DEXs And Lending Protocols
Kendrick’s analysis highlights BNB’s “old-school” profile, which is primarily characterized by its dominance in decentralized exchanges (DEXs), lending protocols, and liquid staking use cases.
This stands in stark contrast to the more innovative developments occurring on other blockchain platforms like Ethereum and Avalanche (AVAX).
While BNB has experienced relatively static developer activity in recent times, Kendrick asserts that its price stability and predictable market behavior position it as a reliable benchmark for the broader digital asset market.
“BNB trades almost exactly like an unweighted basket of BTC and ETH,” Kendrick noted, emphasizing that both the returns and volatility of BNB have closely mirrored those of this index since May 2021.
Challenges Amidst Stronger Competitors
While this projected growth is notable, Kendrick cautions that BNB may underperform relative to Bitcoin and Ethereum. He cites Binance Coin’s limited innovation and slower ecosystem growth as factors contributing to this anticipated underperformance.
The report also mentions that BNB appears “rich” based on Standard Chartered’s preferred valuation metric—market cap to chain GDP—likely due to its close ties to Binance’s centralized exchange (CEX) and the deflationary tokenomics associated with BNB.
Despite the slower pace of development within its ecosystem, Standard Chartered maintains that BNB’s value remains closely linked to Binance’s stature within the cryptocurrency landscape. This reinforces BNB’s role as a sector-wide barometer, reflecting market trends and investor sentiment.
BNB Price Analysis
Currently trading at around $647, BNB’s projected rise to $2,775 suggests a more than fourfold increase over the next four years. Along with the broader recovery in the crypto market, which has seen its total capitalization rise above $3 trillion for the first time since March of this year, BNB is up over 10% on a monthly basis.
Bitcoin (BTC), the market’s leading cryptocurrency, has led this recovery as the token has once again surpassed the $100,000 mark, leading to a renewed sense of bullishness in the market with other altcoins such as Ethereum (ETH), XRP and Solana (SOL) following suit.
Looking ahead, Binance Coin’s obstacles on the daily chart are seen at the $669 and $697 levels, before a potential test of the all-time high of $731 reached on February 13th.
Featured image from DALL-E, chart from TradingView.com