Binance Coin (quotation BNB), the native token of the Binance exchange that also leads the Binance Smart Chain, has reached a new all-time high. At the moment, BSC is Ethereum's only competitor among DeFi initiatives, with significantly lower fees than ETH's.
In fact, BNB has been the most traded cryptocurrency in 2021 so far. As a result of Ethereum's high gas fees and slow transaction execution, other less decentralized but still faster and cheaper blockchains, including Binance Smart Chain (BSC ), have gained much-needed traction.
BNB could surpass ETH
Trading volumes on cryptocurrency exchanges have increased in recent months as interest in cryptocurrency in general has grown, resulting in increased income via trading fees for various cryptocurrency exchanges. Should this incredible rate of growth persist, then BNB has a lot of chances to surpass ETH in terms of market capitalization and replace it as the second largest cryptocurrency just behind the current leader, Bitcoin of course.
Binance's Initial Coin Offering (ICO) took place in 2017 and BNB was trading at around $ 1. Just a few months ago, the price was around $ 50. It has now registered a growth rate of over 1.000% in a relatively short amount of time.
The BNB rally is accelerating at a breakneck pace, with BNB breaking through the $ 400 barrier on April 6th. BNB has also already surpassed 35% of Ethereum's market share, which implies that the token will have to more than triple in value to outperform its main rival.
Not everyone is convinced of Binance
Due to its very low fees, the Binance Smart Chain has emerged as a viable replacement for Ethereum over the past month, with apps like PancakeSwap challenging Uniswap, the leading DEX.
Messari's Ryan Watkins, however, recently used Twitter to express his dissatisfaction with BSC's centralization. According to him, the main reason BSC is faster and more scalable is not due to any miraculous technical progress. On the contrary, it insists that it is the power of centralization.
Binance has tremendous reach and power, which it has used to bring new users into its ecosystem. Binance runs regularly, which is why BNB is thriving according to most analysts. However, a crash could occur as is often the case with cryptocurrencies, so investors should proceed with caution at a time of such volatility.
For this reason, we always advise our readers to invest according to their needs and not to overdo it. Unfortunately, the cryptocurrency market is still very volatile and the risk of a collapse isn't all that remote. Invest only money that you can afford to lose. Also, only do this with platforms that you are sure you can trust.