Unexpectedly: the strongest opponent of Ethereum is Binance BNB, which has skyrocketed 14 times

Moni

Odaily资深作者

2021-02-19 23:43 (UTC+8)

This article is about 1405 words, reading the full article takes about 3 minutes

How long will it take to surpass ETH?

AI Summary

Expand

How long will it take to surpass ETH?

This article comes fromnewsbtc, original author: Yashu Gola

Odaily Translator |

1 year ago, on February 19, 2020, the BNB price was $24.

One year later, on February 19, 2021, the BNB price will be $340.

The 24-hour increase was 57.8%, the 7-day increase was 149.1%, the 14-day increase was 452.8%, the 30-day increase was 618.6%, and the one-year increase was 1183.4%.

Now, the BNB market capitalization is only one step away from Ethereum.

This week, transaction fees on the ethereum blockchain skyrocketed, rendering decentralized applications (Dapps) running on ethereum unusable at all. In some cases, fees of up to $300 have even been charged for a small transaction on Ethereum.

Seemingly running out of options for many Dapp developers, they decided to migrate to Ethereum’s competitor, the Binance Smart Chain, to run their applications. Binance Chain can provide a public ledger that performs the same tasks as Ethereum, but at a cost 99% lower than Ethereum. On Wednesday (February 17), about 2.12 million transactions were processed on Binance Smart Chain, compared to "only" 1.26 million transactions on Ethereum.

For example, the decentralized exchange PancakeSwap is a "UniSwap benchmarking project" launched on Binance Smart Chain. $37 million rose to $1.68 billion on February 19.

Even Changpeng Zhao “couldn’t help poaching,” tweeting on February 19:

"Uniswap should also consider migrating to the Binance Chain. If the ankle is heavy, you can't run fast. Uniswap should pay attention to users."

Binance Coin (BNB) is the native token in the Binance ecosystem and the core of the development of the Binance Smart Chain. Now, the crypto community has discovered that Binance Smart Chain is "threatening" Ethereum, and the price performance of BNB seems to be the best proof, because BNB is currently the third largest cryptocurrency by market value, second only to Bitcoin and Ethereum.

Above: BNB price hits all-time high due to rapid adoption of Binance Smart Chain, Source: BradingView.com.

secondary title

Bitcoin also plays a role in BNB’s rallyPart of the reason for the rise of BNB may also be the "free ride" of the prosperity of the entire cryptocurrency market. In the face of uncertain global economic prospects, more and more institutions are aware of the safe-haven attributes of Bitcoin. In the past 11 months, Bitcoin has soared 1,200% from a low of $3,858 in mid-March 2020 , This rapid growth trend has led to a rebound in the entire cryptocurrency market.

(Note: At the time of writing this article, Bitcoin’s market capitalization has exceeded $1 trillion.)

Institutions including Tesla, MicroStrategy, Square and Bitwise have all bought billions of dollars worth of bitcoin, spreading it across their respective balance sheets as a cash alternative. Meanwhile, billionaire investors such as Paul Tudor Jones and Stan Druckenmiller also see cryptocurrencies as "digital gold," arguing that Bitcoin can effectively Hedge against dollar depreciation.

Above: Bitcoin hitting new all-time highs. Source: BradingView.com

With cryptocurrency adoption surging and cryptocurrency exchanges seeing a spike in trading volumes and registrations, it might seem unsurprising that exchange tokens are skyrocketing.