The explosion of Binance Chain and the acceleration of Ethereum, the next sector may be a hundredfold

The blockchain is entering an unprecedented good situation. In January 2021, the market value of the entire blockchain was still hovering at 1 trillion US dollars. Now, in less than two months, the value of the single currency of Bitcoin The market value has exceeded 1 trillion US dollars, and the market value of the entire blockchain has reached 1.7 trillion US dollars, which has almost doubled.

Tesla's entire company's electric car profits are higher than the $1.5 billion invested in Bitcoin, and the world's richest man has to rely on side jobs to make money.

In the state of expansion of the entire industry, there will inevitably be bubbles, but innovation, application, and continuous iteration at the technical level are all ways to eliminate bubbles.

Now the entire blockchain is a bit like a group of stocks in the stock market. For a while, it was the violent growth of the defi sector, and for a while it was the performance of mainstream currencies. Recently, it has become a show of platform coins. BNB, HT, OKB, MX has increased several times.

The rise of the platform currency actually has its internal reasons.

With the development of defi, the disadvantages of being limited to Ethereum have emerged. The high gas fee is the same as expected before, which indeed greatly limits the development of Ethereum. There is no way for small transactions on Ethereum. After all, who doesn't feel bad about the handling fee of hundreds of dollars?

However, defi is the immediate need, which will inevitably lead to defi spillovers. The TPS of Ethereum has restricted the rapid development of defi. The huge user base and the rapid development of the basic public chain have indeed put a lot of pressure on Ethereum, the king of public chains.

But as far as the entire blockchain is concerned, this is an explosive prosperity. Binance Chain, Huobi Chain, Polkadot and Astro Boy, these catfish-like existences, may speed up the process of Ethereum 2.0 going online , at least Layer 2 of Ethereum will speed up its performance, such as the ZK Rollup scheme.

Now there are many good projects on Binance Chain and Huobi Chain. Let’s talk about Binance Chain today.

With this wave of skyrocketing, the market value of BNB has squeezed out DOT, and has taken the third place in the market value of cryptocurrencies. Some projects based on the Binance Chain have also increased by dozens or even hundreds of times. , like loan project xvs, swap project cake.

One more thing, PancakeSwap's 24-hour trading volume has now surpassed Uniswap, and the total locked value (TVL) of Binance Chain has exceeded 10 billion US dollars, growing from 500 million US dollars on January 20 to February 20. 10.9 billion US dollars, an increase of more than 2000%.

Although the current volume is not enough to compete with Ethereum, such growth is also very terrifying. Coupled with Binance’s platform advantages, high rate of return, low gas fees and other factors, it is transferred to Binance Chain The number of users is increasing. After all, most users are interested in profit. Compared with Ethereum, Binance Chain currently has a better profit point. It is not surprising that such a migration occurs.

Moreover, Binance and Huobi can not only bring liquidity mining to participants, but also have transaction mining. Transaction mining is the platform currency income generated by transactions. Everyone is willing to participate, but the premise is that the transaction fee cannot be high. The transaction fee on Ethereum is obviously too high, which is not suitable for transaction mining. Therefore, from the perspective of short-term profitability, Binance Huobi does have an advantage.

Now there is an argument on the Internet that Binance Chain can surpass Ethereum?

I think this is impossible, but the emergence of Binance Chain and Huobi Chain can stimulate Ethereum to speed up the upgrade of Ethereum, because the degree of decentralization of Binance Chain is far inferior to that of Ethereum.

The Binance Chain was created by Binance, and a large part of the token BNB is also in the hands of the Binance team. This has led to the blood of centralization in the genes of the Binance Chain, and decentralization is the core of the block chain. The soul of the chain lies.

If the Binance Chain becomes the king, will the decentralized belief of the blockchain become nowhere to be placed?

There have been media reports before that Binance is deliberately increasing the gas fee of Ethereum. Originally, our average Gwei for a transfer is around 150, but Binance needs to use 270 Gwei to withdraw cash, which can indeed speed up the arrival speed.

But we pay 50% more fees just to save a few seconds of confirmation time, is this really necessary? Is this Binance forcing users to give up Ethereum and choose Binance Chain? Although Binance came out to refute the rumors later, we will not make any assumptions here.

Is that bad for Ethereum mining?

Recently, many friends who have invested in mining machines have come to ask me whether it will be unfavorable for Ethereum mining if this continues. I think it is a bit unfounded to worry about.

First of all, the development of Binance Chain and Huobi Chain is a good thing for the entire DeFi ecosystem. After all, only relatively large funds can participate in the previous DeFi projects based on Ethereum, otherwise you will not make money at all .

Just like a friend of mine went to Ethereum to operate a liquidity mining. He deposited 3,000 yuan and wanted to try it out, but the handling fee cost more than 400. How long does it take to get back the cost, and it will be a sum of money when he withdraws it. For a fee of several hundred yuan, I suggest that you wait for the Ethereum ZK Rollup to be realized before you take it out.

The current low gas fee of Binance Chain and Huobi Chain has undoubtedly lowered the entry threshold of DeFi, allowing more people to participate in DeFi. These users cannot be said to be Huobi or Binance, they are liquid Specifically, when Ethereum 2.0 or the closer ZK Rollup is realized, these users can easily migrate to Ethereum.

The emergence of Huobi Chain and Binance Chain has encroached on the territory of Ethereum, but Ethereum has the security and decentralization that the public chain of the platform cannot match.

On the bottom layer, Ethereum has an absolute advantage; but in terms of efficiency, it is currently limited, which also allows other public chains to have room for barbaric development.

But this is the catfish effect. Ethereum will speed up the pace of upgrading and get through layer 2. When the TPS limitation is solved and the high transaction fee is reduced, then the status of Ethereum will remain rock-solid.

Of course, in the end, the public chain track will be dominated by Ethereum. Huobi Chain and Binance Chain will also have their own user groups and development space. Polkadot and Astro Boy, as cross-chain leaders, may also have good opportunities. development, but in the end, V guest believes that it will move towards integration.

How to arrange it next?

Persisting for a long time, V guest is optimistic about the two directions of ETH and Polkadot. Although Polkadot has been criticized by many people, it was not born at the right time, or it was developed by attracting many communities, but Polkadot’s infinite upgrade is a Fatal advantage.

Let’s talk about the next medium-term investment. We must still hold BTC, especially ETH. With the implementation of the ROLLUP plan, there will be another wave of skyrocketing.

Of course, if you want to seek greater returns, you should not increase your BTC position, because a 1.5-fold increase is incredible, although it is likely to be achieved; ETH also needs to increase your position less, but buying coins is not as good as buying mining machines Mining, according to the current currency price, mining is 6 times the return, and when the next round of bull market, I am afraid that it will be at least 60 times the return.

If you want to make quick money this round, you can buy more DeFi on ETH, because the gas fee is resolved, I am afraid that the next round of DeFi will explode; and Huobi and Binance ecological projects, there is still an end; The card parallel slot auction is coming soon, and new currencies under $1 can be ambushed, and there may be opportunities for hundreds of times in the future.

I wish you all the best in the bull market in the year of the ox.