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Balancer price prediction: What is balancer (BAL)?

By Peter Henn


Updated

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In this article:
BTC/USD
Bitcoin / USD
23449.05 USD
2.15 +0.010%
COIN
Coinbase
77.50 USD
1.28 +1.660%
FTT/USD
FTT/USD
2.0407 USD
0.0428 +2.170%

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Balancer logo
Can balancer help people work on DEXes? – Photo: Shutterstock

Balancer is designed to make decentralised exchanges easier for customers to use but, in terms of crypto, what is balancer (BAL)? 

Let’s see what we can find out, and also have a look some of the balancer price predictions that were being made as of 1 December 2022.  

Balancer explained

In the world of cryptocurrency, one of the key places is the crypto exchange. If the market sets the price of a coin or token, then the exchange is the marketplace that actually sets how much people can buy or sell a crypto for. While exchanges are pretty common, there are ultimately two different kinds of crypto exchanges. 

The main, most notable and prominent ones are centralised exchanges, also known as CEXes. When you think of places like Coinbase (COIN) or Binance, these are centralised exchanges (CEX). These places allow people to buy, sell and trade coins and tokens, but there is what might be considered a potential catch. People are only able to operate with the pairs that the exchange lists. Furthermore, most of the time, people need to go through Know Your Customer checks before they can start operating on them.

On one hand, this is a good thing, because it surely benefits everyone if criminals are not allowed to exploit the anonymity of crypto. On the other hand, there are some people who might be a little sceptical of centralised exchanges. There are people who want to have the opportunity to trade whichever cryptos they want at a time and a price that is convenient for them. There are also some blockchain evangelists who believe that any form of centralised authority runs contrary to the principles of blockchain technology.

Anyway, those people can make use of decentralised exchanges (DEXes), which are designed to operate in a decentralised way, allowing people to trade whichever asset they want for whatever price they want. In order to work, a DEX needs an automated market maker (AMM). This is a program that automatically provides liquidity from the DEX’s liquidity pools, which allow a DEX to function properly.

Balancer is one such AMM. As the whitepaper says: 

“Balancer turns the concept of an index fund on its head: instead of paying fees to portfolio managers to rebalance your portfolio, you collect fees from traders, who rebalance your portfolio by following arbitrage opportunities.”

One thing that makes Balancer a little different from other Ethereum-based AMMs is that not only can anyone, potentially, add liquidity to the liquidity pools, but people also do not have to use ETH in any capacity on the system, giving it more flexibility. 

Every blockchain-based network needs to have its own cryptocurrency, and Balancer has the balancer token, also known by its ticker handle, BAL. This crypto works as a governance token, meaning that anyone who holds it can take part in votes on the future of the network. 

It is also worth mentioning at this point that BAL, because it is based on the Ethereum blockchain, is a token rather than a coin. You might see references to such things as the “BAL coin” or a “balancer coin price prediction”, but such terms are, strictly speaking, incorrect.

Balancer was founded by Balancer Labs which, in turn, was set up by crypto entrepreneurs Fernando Martinelli and Mike McDonald in 2019. Balancer was first introduced in 2019, but the native token did not come onto the open market until the following year.

Balancer price history

It is now time to look at BAL’s price history. While past performance should never be taken as an indicator of future results, knowing what the token has done previously offers much-needed context when it comes to interpreting a balancer price prediction or making one of our own. 

When the token first came onto the open market in the summer of 2020, it went through some peaks and troughs. It opened on 24 June at $19.53 before spending much of its first months or so at a little above $10. For most of August and the first part of September it was above $20 before falling below $10 after that. 

Balancer price history


Things took an upward turn in early 2021, as the market went through a significant bullish period, with the BAL token reaching an all-time high of $74.77 on 4 May 2021. After that, though, the great crypto day crash of 19 May 2021 took the shine off a lot of the crypto market and BAL dropped to below $16 in the middle of June.

ETH/USD

1,660.11 Price
+1.190% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 5.00

DOGE/USD

0.09 Price
+1.450% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0011712

XRP/USD

0.41 Price
-0.180% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00362

BTC/USD

23,449.05 Price
+0.010% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

August saw a market recovery, with the growth of non-fungible tokens (NFTs) giving cryptos a massive boost. BAL joined in the good times, going on a bull run that saw it break past $30 in early September, before things fell down again. There was a downturn after this and, despite a flurry of activity in early November as bitcoin (BTC) hit new highs, boosting the market to see BAL hit a periodic high of $29.08 on 4 November, things continued to drop and the token closed the year at $17.53. 

While 2021 had been a good year overall for BAL, things went a bit wrong in 2022. It initially grew to $20.37 on 4 January, but soon went downhill, hitting a low of $10.55 in the wake of Russia’s invasion of Ukraine on 24 February. 

The end of March saw it shoot up, reaching $21.75 on 8 April, but then China’s crypto ban saw it slump down and, on 12 May2022, with the market in turmoil following the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency, BAL fell to a daily low of $8.15. 

While there was a small recovery after that, June saw the crypto bear market confirmed following the cancellation of withdrawals on the Celsius lending platform and the token sank to an all-time low of $3.65 on 18 June. 

Following that, there was some recovery and, with the news that Balancer had carried out a $1m-plus token swap with the decentralised autonomous organisation (DAO) that governs the AAVE protocol, AAVE DAO, the token went on an upward stroll that culminated in a high of $8.99 on 12 August before it slid back down to lows of below $5 in the middle of October, before making a turnaround to reach a high of $7.29 on 5 November.

Around this time, the collapse of the FTX (FTT) exchange caused a market crash and BAL sank to $4.65 on 9 November. After that, there has been slow, unsteady upward movement and on 1 December 2020 it was worth about $6.30.

At that time, there were just under 46 million BAL in circulation out of a total supply of 53,836,031. This gave it a market cap of about $285m, making it the 98th-largest crypto by that metric. 

Balancer price prediction round-up

Let’s move on to take a look at the some of the balancer price predictions being made on 1 December 2022. It is important to remember that price forecasts, especially when it comes to something as potentially volatile as cryptocurrency, can often be wrong. Also, we need to tell you that long-term crypto price predictions are often made using an algorithm, which means that they can change at a moment’s notice.

First, CaptainAltCoin made a balancer crypto price prediction that said it might drop to $3.94 in February 2023 before reaching $7.38 in December. By 2025, the site said that BAL could be worth $12.80 before slipping to $11.29 in five years’ time. The site made a balancer price prediction for 2030 that saw it at $32, and one for 2040 that forecast it to stand at $64.01 that year. 

Next, CoinsKid had a BAL token price prediction that suggested the token could close 2022 at $5.31, then reach $7.54 by the end of 2023 and $10.26 a year from then. The site then made a balancer price prediction for 2025 of $10.31 in January, $14.47 in July and $16.48 in December. By the end of 2026, BAL may be worth $27.76, according to the site. 

Meanwhile, Gov Capital issued a balancer price prediction for 2023 that might spell bad news for its investors. It suggested the token could hit a high of between $21.76 and $21.77 on 6 May but could then collapse significantly, falling to a level so low as not to be worth even recording by 22 May. The site’s one-year price forecast did give some cause for hope, though, as it said that BAL would not be a deadcoin, potentially trading at just under $6.18 by 1 December 2023.  

Finally, Wallet Investor also provided a bearish BAL price prediction. The site estimated that by July 2023, the BAL token price may have fallen to a paltry $0.29. 

Final thoughts

When considering a BAL price prediction, it is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never trade with money that you cannot afford to lose.

FAQs

Is balancer a good investment?

It is hard to say. A lot will depend on how its current recovery goes, and how the market behaves in the future, too. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the BAL token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.

Will balancer go up?

It could do, but equally it might not. You have to keep in mind that cryptocurrencies can be extremely volatile and prices can go down just as easily as they can go up.

Analysts and algorithm-based forecasters can and do get their predictions wrong. Keep in mind that past performance is no guarantee of future returns, always do your own research, and never invest what you cannot afford to lose.

Should I invest in balancer?

Before you decide whether or not to invest in balancer, you will need to carry out your own research, not only on BAL but on other DEX-related coins and tokens. 

This is something that you will have to decide for yourself. Before you do so, you will need to do your own research. Remember prices can go down as well as up. Keep in mind that past performance is no guarantee of future returns, and never invest what you cannot afford to lose.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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