Bancor Price

Bancor (BNT) is a decentralized trading protocol which provides an open financial marketplace where traders, liquidity providers, and developers can participate with no barriers to entry. Users can trade tokens quickly and securely at the best prices as well as staking tokens in Bancor’s decentralized exchange to earn fees and rewards with impermanent loss protection. The protocol is governed by the Bancor decentralized autonomous organization (DAO) through a democratic and transparent voting system, enabling the Bancor community to shape the future of the project.

The protocol’s main cryptocurrency, Bancor Network Token (BNT), is the default for creating smart tokens on the network and is required when staking in Bancor pools. In the time that BNT has been on the market, its price has been through some major changes, and if you want to know why then you’re in the right place. We’ve compiled all the information you need to get a better understanding of BNT price – as well as the factors which influence it.

Bancor Price History

Following an initial coin offering (ICO) in June 2017, Bancor (BNT) was trading on the markets at around $3 by the end of that month. Prices quickly dipped below $2 in July and BNT price then remained within a $1.60 to $3.20 range until December. The coin’s first major rally then began and BNT made gains of 118% over the course of December to close the year with a value of $5.34.

The surge continued into the start of 2018, with BNT reaching an all-time high of $11.24 on 9 January. This was followed by a crash, with BNT dipping below $5 a week later. The further decline saw prices briefly drop below $2 at the start of April, before another attempt to rally took Bancor price over $5.50 in the first week of May. This soon petered out, however, and Bancor showed a bearish trajectory for the rest of the year, setting a series of lower highs and lower lows, until it ended 2018 with a price of $0.61. This represented a 95% drop from its January peak.

As 2019 began, BNT price fell slightly to a low of $0.43 in February. The token then achieved some steady gains until it reached a high of $0.96 towards the end of June. After that, the rest of the year was spent mostly in decline, and by the end of 2019, BNT had dropped to a value of $0.26 – less than half of the year’s opening price.

There was no significant price change in January of 2020, but in February, BNT improved slightly to $0.37. This was short-lived, however, and BNT soon bottomed out at $0.11 following a crash of 43% on a single day in March. This marked the start of a period of growth and two months later BNT reclaimed $0.20. More pronounced growth over the next three months took prices to a high of about $2.80 in August. More dips in the following months saw BNT go as low as $0.50 before the second major rally got started in November. By the end of the year, prices had climbed back up to $1.27.

This growth continued throughout January 2021, with BNT improving to $1.88 by the end of the month. The curve then became steeper in February, when BNT reached a peak of almost $7. Following a pullback of over a third at the end of the month, the beginning of March saw the Bancor market cap surpass $1 billion for the first time before BNT set a new high for the year at $9.77. A period of decline then saw prices drop below $6 in April, after which a slight resurgence in May saw BNT regain $8.

Analyzing Bancor Price History

BNT price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves using various indicators while studying price charts in order to make sense of previous price movements. With BNT, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges.

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. Bancor raised $153 million in its ICO and the team behind it has experience of founding other successful projects, such as MetaCafe, Mytopia, and Appcoin. These could be good signs for Bancor’s fundamentals.

Broader market trends have also played a role in BNT’s price history. Its surges in 2017 and 2021 weren’t unique – the entire crypto market pumped around these times. Bitcoin was in the midst of major bull runs then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

BNT’s huge single-day drop in March 2020 came as economies and borders were closing down around the world in response to the COVID-19 pandemic. The effect of this was felt by the whole cryptocurrency sector and the entire stock market, which experienced the biggest single-day crash since 1987.

The overall price trend of BNT tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Bancor Network Token (BNT)

A variety of different things can affect the price of Bancor (BNT), including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency and global economies.

Bancor Network Token (BNT) has no capped max supply as the BNT supply is elastic to provide impermanent loss protection. The protocol co-invests BNT in pools alongside liquidity providers to pay for this impermanent loss protection with swap fees earned. However, if the fees aren’t enough to compensate liquidity providers, new BNT is emitted to make up the difference. This would increase the supply of BNT and put downward pressure on its price.

A major source of demand for BNT is from liquidity providers, as all pools on the Bancor protocol contain BNT. Users can earn fees by staking liquidity in the pools, which could incentivize more people to buy BNT and become liquidity providers. Coins must be staked for at least 100 days for full impermanent loss protection, and while BNT is staked, it is effectively removed from the circulating supply.

This means that the value of BNT will likely increase with the growth and adoption of the Bancor protocol, as the higher the trade volume, the more fees will be generated, and therefore the greater the incentive will be to stake BNT in a liquidity pool. Part of the funds raised in the ICO was committed to marketing and community grants to aid in the long-term adoption of the protocol, which could ultimately drive further trading volume.

Live Bancor Value and Market Cap

The live price of BNT varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given BNT’s volatility, its live price can change by a large amount in a very short space of time. The market cap of Bancor is equal to the price of BNT multiplied by the number of BNT in the circulating supply.

Bancor Price FAQ

How is the price of BNT calculated?

BNT’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying BNT than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of BNT different on different cryptocurrency exchanges?

BNT’s price is based purely on trading as there is no standard global BNT price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affects the price.

What will BNT be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of Bancor. However, as liquidity providers are incentivized to stake BNT to earn trading fees, the value of BNT will likely rise with the adoption and trading volume of the protocol.

Conclusion

The price of BNT has been on quite a journey, going from highs of over $11 to lows of $0.11. However, its price movements have rarely been smooth as BNT’s volatility has led to plenty of surges and crashes along the way.

Many different factors have played a role in determining the price of BNT, including its elastic supply, demand from liquidity providers, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Bancor and cryptocurrencies!