Analysis of BGB investment opportunities and price trends, may reach $31.66 within this year

Original author: Crypto Frontline (Sugar Brother) @Xxoo 3 k 5 k

Recently, Bitgets platform currency BGB has risen against the trend, and the increase is staggering. Some people in the authors communication groups regret not getting on board. On December 27, Bitgte announced that it would destroy BGB worth more than 5 billion US dollars. Influenced by the news, the price of BGB reached an ATH of 8.49 US dollars that day, and the market value once exceeded the 10 billion mark.

On December 30, Bitget announced the completion of the destruction of 800 million BGB (accounting for 40% of the total supply, with a value of over $5 billion), and the total market value dropped to about $8.9 billion. The destruction plan of BGB is based on the newly released white paper. The entire plan includes this destruction and the quarterly destruction plan. In the future, 20% of the profits of Bitgets exchange and wallet business will be used to repurchase and destroy BGB every quarter to implement the BGB deflation model commitment, which is further beneficial to the market.

This series of market performance and measures has made BGB the focus of the industry recently and has attracted widespread attention from the market. This article will review the development history of platform coins and BGBs recent market performance data to help readers analyze the logic behind BGBs rise, and analyze its future trends and whether there are still investment profit opportunities.

1. Symbiotic Evolution of CEX and Platform Coins

In the complex ecosystem of Kryptocurrency, CEX (centralized exchange) and platform coins are like spirals that rise synchronously, driving each other and developing in synergy. As the core hub of cryptocurrency trading, CEX provides investors with an efficient and convenient trading environment, gathering massive funds and trading flows. In the process of development, CEX launched a series of innovative financial products to attract more investors, and platform coins came into being in this process.

Platform coins were initially used to meet the internal trading needs of exchanges, such as deducting transaction fees. With the continuous development of the market, the functions and values of platform coins have gradually diversified, and they have been given more application scenarios. For example, users can use platform coins to participate in various activities of the exchange, such as voting for listing, subscribing to high-quality project tokens, etc. In the voting for listing, users holding platform coins can vote for the projects to be launched according to the number of coins they hold. If the project is successfully launched, users may receive certain rewards, which not only enhances the users sense of participation in platform governance, but also provides users with additional income opportunities. In addition, some platform coins have begun to get involved in the field of decentralized finance (DeFi), providing users with financial services such as lending and staking.

The core value of the platform currency can be summarized as follows:

1. Transaction medium: Platform coins are widely used in payment scenarios for transaction fees, and users are given discounts of varying degrees. This has formed a stable demand base for platform coins within the exchange ecosystem, highlighting their value as a transaction medium.

2. Ecological rights and interests: Platform coins are important credentials for users to deeply participate in the exchange ecosystem and obtain various rights and interests, such as participating in potential project subscriptions and voting for coin listing activities and obtaining rewards.

3. Value capture: As the exchange expands its business, grows in the number of users, and increases its market share, the platform鈥檚 profitability and market influence will continue to increase, enabling platform coin holders to share in the economic benefits of the exchange鈥檚 growth.

4. Markt liquidity: The high liquidity of platform coins enables them to have the function of price discovery, which has an important impact on the resource allocation and risk pricing of the entire market.

We can clearly see the interdependent and mutually reinforcing relationship between CEX and platform coins. The development and growth of CEX provides a broad application scenario and solid value support for platform coins, while the innovation and application of platform coins further enhance the competitiveness and user stickiness of CEX.

However, this development process has not been smooth sailing. For example, there have been many cases where CEXs have been hacked due to security vulnerabilities, resulting in significant losses of user assets and a sharp drop in the price of exchange tokens. These incidents have sounded the alarm for the entire crypto industry and reminded investors of the investment risks of exchange tokens.

2. The rise of BGB and Bitget

This section first introduces BGB and Bitget. Bitget is a cryptocurrency derivatives exchange founded in 2018, providing spot, derivatives and copy trading. After a period of exploration, Bitget suspended spot trading in 2019 and launched the U-standard contract, turning losses into profits. The first copy trading in 2020 greatly lowered the threshold for cryptocurrency trading, allowing novice investors to follow the strategies of professional traders, thereby attracting a large number of new users to the platform. Since then, product innovation has become the foundation of Bitget.

After several years of development, Bitget has transformed from a derivatives company to a comprehensive exchange, with a multi-dimensional layout of operations. Since 2022, Bitget has begun to expand its team to focus on operations and growth, open up KOL channels in East Asia, and replicate the methodology to multiple regions in Asia, Europe and Latin America. The number of users has rapidly increased from 300,000 at the beginning of 2021 to 20.2 million at the end of 2023.

In the past 24 years, Bitget has focused on expanding globalization, compliance and Web3 on-chain entrances, and disclosed executives with backgrounds corresponding to the goals – COO Vugar Usi Zade with many years of experience in multinational markets, CLO Hon Ng who is responsible for compliance and legal GR, and CEO Gracy Chen who was once an investor in BitKeep.

Currently, Bitget has a team of over 1,500 people, serving over 45 million users in more than 150 countries and regions. With an average daily trading volume of over $10 billion, it is the worlds largest cryptocurrency copy trading platform and ranks fourth in terms of comprehensive market share among cryptocurrency exchanges.

As the native token of the Bitget platform, BGB has undergone continuous evolution and expansion in its role and functions since its birth. BGB was first launched on July 29, 2021. At first, it was mainly used to offset transaction fees within the platform. Later, with the gradual improvement of the Bitget ecosystem, the application scenarios of BGB have been fully expanded, such as LaunchPad IPOs and LaunchPool mining.

In Bitgets LaunchPad new listing, users holding BGB can obtain priority to subscribe to new project tokens, which provides users with the opportunity to participate in high-potential projects early and obtain rich returns. In LaunchPool mining, users can participate in the division of new tokens by staking BGB and realize disguised dividends. In addition, BGB also plays a role in Bitgets ecological governance. It is a key tool to encourage users to actively participate in platform decision-making and increase trading activity, further enhancing the interaction and stickiness between users and the platform.

In terms of the coin price, after Bitget restarted its spot products and released BGB in 2021, the market was turning from bullish to bearish. However, with the launch of various Bitget products and the rapid implementation of its brand strategy, BGBs independent market price has soared all the way. After each new high, it averaged a 30% correction and then accumulated an average increase of 250%, which was very impressive. It finally stayed at around $0.2 at the end of 2022. Then from 2023 to 2024, the bear bottom turned bullish. With the release of Bitget Wallet and other products and its expansion in the Middle East and other regions, BGB also rose to a new high of $1.486, and then slightly corrected. In December, BGB began to soar all the way. On the 26th, the Bitget team announced that BGB and BWB (Bitget Wallet token) had merged and rushed to the current high of $8.49, and then adjusted back to around $6.

Regarding the repurchase and destruction mechanism of BGB, as of December 30, 800 million BGB held by the core team have been destroyed for the first time. After that, the quarterly destruction mechanism will be launched in 2025, with 20% of the profits of exchanges and wallets used to repurchase and destroy BGB, and ensure that the destruction records are open and transparent. The current circulation of BGB has been reduced from 2 billion to 1.2 billion. This move shows Bitgets commitment to the BGB deflation model and its determination to accelerate the development of the ecosystem.

The two core attributes of platform coins are asset attributes and tool attributes. The former is the value projection of the exchange, and the latter is the points-based tool operated by the exchange. In the Bitget exchange ecosystem, BGB is an asset that reflects the market value of the exchange and runs through different products and businesses. The operating points that run through the three-party relationship between the exchange, the project party, and the user, borrow the B-side interests of the project party, and BGB enables the exchange to retain C-side users and their assets with services. The C-side expectation of dividends and concessions is fixed with the golden shovel attribute of BGB, forming a positive cycle from asset precipitation to asset increment. At the same time, it helps the B-side obtain early liquidity and early users, and gives benefits to the C-side to build an ecosystem together.

3. Comparison between BGB and mainstream platform coins

In the cryptocurrency market, mainstream platform coins such as BNB and OKB are backed by their respective exchanges, providing users with diversified rights and services, participating in the development of the ecosystem, and constantly innovating and optimizing to consolidate their market position.

First, let鈥檚 make some comparisons with the mainstream CEXs:

• As can be seen from the figure, the trading volume of all exchanges in December did not change much from the previous month, but Bitgets spot trading volume increased by 102.7% from the previous month, which was a very significant increase. This was highly related to Bitgets various important measures in December and the increase in BGB prices, reflecting the markets recognition.

• In terms of the number of assets, Binance and Bitget have a relatively rich number of assets and trading pairs, and the deposited Altcoin assets, mainly platform coins, account for more than 45%, indicating that the assets are of high quality and users are more willing to hold them.

Secondly, the comparison of mainstream platform coins is as follows:

• In terms of price and market value, BGB leads the way: the price has increased by 153.59% in 30 days and 880.63% in the past year; the market value has increased by 208.98% in 30 days and 828.09% in the past year. Both are much higher than BNB and OKB, reflecting the strong confidence of the market.

• In terms of average daily trading volume, BGBs average daily trading volume is lower than BNB and higher than OKB; but in terms of growth, BGB increased by 264.02% from the previous month and 1335.08% from the same period last year, far ahead of other platform coins. The liquidity brought by the full turnover of chips, on the one hand, means that the price discovery mechanism is more effective, providing more reasonable prices for investment; on the other hand, it also means that the fee income will increase, providing more financial support for Bitgets continued operation and development, to do technology upgrades, security maintenance and new business development.

• In terms of V/MC coefficient, OKB is lower than 1%, at 0.53%; BGB and BNB are both higher than 1%, with BGB as high as 3.12%. The V/MC coefficient can reflect the evaluation status of the market value to a certain extent. The higher V/MC reflects that BGB may still be undervalued by the market and has great potential for growth.

• In terms of equity, BGB has added the last piece of the puzzle of buyback after launching the quarterly destruction plan, and BNB has also improved the airdrop function in the new version of the wallet. The ecological empowerment of the two is relatively more comprehensive. BGB has more channels to obtain income through new products such as LaunchPad, LaunchPool, PoolX, and applications on the Bitget Wallet and Morph chain ecosystems.

4. Supporting factors for BGB鈥檚 current rise

Next, we will try to analyze the reasons for BGBs current rise, determine and understand whether its price is strongly supported, what are the positive and negative factors, and whether there are still profit opportunities.

The author believes that the following factors support the price of BGB:

1. Continuous release of innovative products. Whether it is the first launch of U-standard contracts and copy trading in the early years, or Launchpad, LaunchPool, and PoolX, Bitget continues to attract new users and promote activity through innovative user-side products. The addition of new users has brought more funds and trading activity to the platform. Combined with BGB for asset operation, it continues to deepen user stickiness and jointly promote the market demand and price increase of BGB.

2. MCN-based differentiated strategy and global channel control. Bitget has established its own global KOL channel through MCN-based differentiated strategy. Copy trading is similar to live streaming. It uses KOL to release the accumulated advantages of contract business and increase transaction frequency and user stickiness with low threshold. With the rapid growth of new users in many places in Asia, Europe and Latin America, the demand for BGB has been further boosted.

3. Clearly fulfill the promise of the deflation model. The Bitget team fulfilled the promise of the BGB deflation model, destroyed 40% of the BGB in circulation held by the team and launched a quarterly destruction plan, which demonstrated the teams determination for long-term development and eliminated the markets previous doubts about the teams holdings. At the same time, the increase in BGB scarcity is also an important factor in directly raising prices.

4. BGB and BWB merge. This move made the Bitget team clear about the core position of BGB and further expanded the function and value of BGBs incentive activities in the original wallet business. At the same time, it eliminated the confusion of new users about the two currencies in the exchange and wallet business, and broke down the barriers to participating in various activities within the ecosystem.

5. Continuous improvement of user experience. Bitgets continuous optimization of user services, such as providing multilingual customer service support and improving the user experience of the trading interface, has also enhanced the stickiness of users to the platform, making users more willing to hold and use BGB, thus providing sufficient user base support for the price increase of BGB.

It can be seen that many adjustments and optimizations related to BGB and Bitget form a flywheel: on the one hand, by optimizing the user experience of new users, a positive cycle is formed with its rapidly advancing global new user activities; on the other hand, BGB is combined with asset management tools to promote activation and sedimentation, and continuously convert deep users; the increase in demand for BGB usage drives up the coin price, and the room for coin price growth further stimulates the entry of new users.

5. Analysis of BGB investment opportunities

Regarding the feasibility of BGB investment at present, here is a summary and supplement of the favorable and unfavorable factors:

Positive factors:

• Strong growth momentum: In the past month, the price of BGB has shown strong growth momentum, with a high cumulative increase, far exceeding mainstream platform coins such as BNB and OKB. The Bitget exchange behind it has performed well in derivatives business, with a significant increase in market share. According to Coinglass data, it ranks among the top three in 24-hour contract trading volume of BTC and ETH.

• Rich empowerment measures: Through Launchpad new coin subscription, Launchpool new coin mining, VIP experience, handling fee discounts, preferential subscription of mainstream coins, additional financial management income, free withdrawal and other multiple rights and interests, it brings various benefits to holders. Among them, the wealth income created by Launchpad new coin subscription is particularly significant, and high frequency and high income are its highlights.

• Application scenario expansion: In addition to using BGB as a way to pay gas fees, Bitget is also promoting its application in mainstream public chains and DeFi ecosystems to increase on-chain liquidity, staking income, and opportunities to obtain cooperative token airdrops.

• Deflation mechanism: Bitget promises to maintain the status of BGB tokens, and plans to set aside 20% of the exchange and wallet fee income every quarter from 2025 to repurchase BGB and put it into a black hole address for destruction. Recently, 40% of the tokens held by the core team have been destroyed, which will reduce the circulation of BGB and may help increase its value.

• PayFi application: BGB actively explores applications in payment, DeFi, NFT and other fields. For example, some merchants accept BGB as a means of payment, and some DeFi projects integrate BGB as collateral assets. Currently, PayFi tools such as Bitget Card and Bitget Pay have been launched. Holding a certain amount of BGB can unlock specific merchant discounts, consumer rewards, rate discounts and more channel services.

• The market valuation is relatively low: Judging from the V/MC coefficient mentioned above, BGB may still be underestimated by the market and still has a lot of room for improvement compared to BNB and OKB. This is also a reference factor.

Negative factors:

• Insufficient on-chain pool depth: This may affect the execution efficiency and price stability of some transactions.

• Relatively low market capitalization: The market capitalization is relatively low compared to BNB, etc., which may lead to relatively large price fluctuations and relatively weak market influence and liquidity.

• Overheated price: BGB price has been rising sharply recently. Such a large price increase may be out of touch with its fundamentals to a certain extent. There are signs of overheated price. Once the market sentiment changes, the price may fluctuate sharply.

It can be seen that its advantages, such as strong price growth, rapid platform development, active community, rich application scenarios, deflation mechanism, and layout in PayFi and on-chain development, provide opportunities for investment. However, its disadvantages, such as shallow on-chain pool and low market value, cannot be ignored, which may lead to large price fluctuations and affect transaction efficiency.

6. BGB price forecast for 2025

There are more favorable factors in 2025 than in the past few years, such as Trumps support for cryptocurrencies after taking office, the liquidity brought by the global interest rate cut cycle, and greater recognition of cryptocurrencies by countries around the world. 2025, especially the first quarter, may be a stage of market explosion.

Taking into account BGBs current destruction actions and subsequent deflation mechanism, its more undervalued market value than BNB, its stronger growth momentum and more comprehensive ecological applications than OKB, all of which provide solid support for BGBs price. BGB in 2025 will be more worth looking forward to than BNBs performance last year.

Therefore, in terms of specific price predictions, the author takes the current price of BGB at $6 as the base, and calculates the room for BGB price growth based on the V/MC coefficient, transaction volume growth rate and deflation model.

1. The price calculation for the whole year mainly sets three related factors: the current V/MC coefficient of BGB is known to be 3.12%, and the market is assumed to be appropriately corrected to the ideal value of 1%, reaching 2.5%; the transaction volume growth rate in the past 365 days is known to be 1335.08%, and here it is conservatively assumed that the growth rate will reach 250% in 2025; the circulation volume of BGB is planned to decrease by 5% throughout the year due to the deflation plan.

2. V/MC = trading volume/market value, so when V/MC decreases, trading volume increases, and market value increases accordingly. If V/MC drops from 3.12% to 2.5%, and trading volume increases by 400%, the market value will increase to 4.38 times the current value, recovering the undervalued market value.

3. Combining the formula of market value = coin price 脳 circulation volume, since the market value has risen to about 4.38 times the original market value and the circulation volume has dropped by 5% due to the deflation model, it can be concluded that the coin price will rise to about 4.61 times the current coin price.

4. The value of BGBs LanuchPool, LaunchPad, PoolX and other revenue products, and the further application expansion of BGB and BWB in the Bitget Wallet and Morph chain ecosystems in the future, with an overall weighting of 10%, it can be concluded that the price of the currency has increased by 5.071 times. Combined with the optimistic investment sentiment brought by the increase, the actual increase may be higher.

5. The short-term (first quarter of 2025) forecast involves fewer factors. The two factors of V/MC coefficient correction and circulation reduction will not have a significant impact. Considering only the increase in trading volume and the reduction in circulation caused by the first destruction, we can conservatively estimate the price increase to be about 1 times.

Here is my final price forecast: a new high of $12.34 in the first quarter of 2025 and $31.66 within the year.

Then, when building a position, readers should also consider their own risk tolerance and investment goals, pay close attention to BGBs recent performance in application expansion, on-chain construction and market competition, make careful decisions after weighing the pros and cons, and appropriately include it in a diversified investment portfolio. It is not advisable to over-weight it to prevent potential risks from causing a major impact on the investment portfolio.

The above is the authors review of BGBs development and future judgment based on public information. I hope that the analysis in this article can provide some valuable references for investors. But please remember that investment decisions should be based on comprehensive research and careful judgment, and do not blindly follow the trend. At the same time, we should also pay close attention to the dynamics of the crypto market and industry development trends so as to adjust investment strategies in a timely manner.

This article is sourced from the internet: Analysis of BGB investment opportunities and price trends, may reach $31.66 within this year

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