In the past few weeks, I have been monitoring events around the Binance Smart Chain (BSC) and the Binance Coin (BNB). To be frank, a lot is really taking place on the BSC, a fine alternative to developers as well as users who are finding Ethereum less desirable due to the skyrocketing transaction fees. Just as ETH is known as the token powering the Ethereum blockchain, BNB is the token powering the Binance Smart Chain. Therefore, BNB is technically emerging as the first real rival token of Ethereum.
Prior to this very moment, a number of blockchain projects such as EOS, Tron, Steem, etc have prided themselves as the Ethereum-killer but none has really developed products that could give Ethereum a run for its money. For the first time, we find a blockchain in the BSC that is actually luring rational people over. Its native token, BNB, is growing very strong and cannot be overlooked by any serious-minded investor. In this article, I share with you four reasons why the BNB could probably be the next Ethereum.
1. BNB As the Native Token of the Binance Smart Chain (BSC)
On the Ethereum blockchain, users pay transaction cost with Ethereum. This naturally creates very high demand for Ethereum, depending on the number of users and activities on the network. On the BSC, however, BNB is used for transactions. Of course, that also creates a huge demand for BNB. And as we see people gradually migrating from Ethereum to BSC, the value of BNB is sure to rise, rise significantly.
2. Periodic Token Burning Events
The Binance Team periodically burns the BNB token depending on the amount of money made in BNB from transaction fees across the Binance ecosystem. A few weeks ago, before the recent surge in the price of BNB, Binance conducted an event which led to the burning of millions of BNB tokens. Historically, these events have witnessed a correlative growth in the price of BNB as witnessed in the past weeks. Here the BNB has some advantage over Ethereum because the latter does not conduct such events.
3. The Binance Factor
As you probably know, Binance is the largest CEX in the world, a status which makes it quite formidable when it comes to cryptolitics, that is, the politics surrounding the listing and delisting of coins as well as market trends. Interestingly, the BNB is also the token powering Binance where millions of crypto transactions occur each day. This clearly creates a demand for BNB from those who want lower trading fees, making a case for more growth in the BNB price.
4. The Binance Launch Pool
This is a platform on the Binance ecosystem where what seem like an ICO can take place for new projects that are kicking off. Usually, BNB is staked before participants are allowed to be part of the token offering, which is then listed on Binance. SPF and BEL are two tokens which entered the market by leveraging on the Binance launch pool.
Usually, the Binance launch pool creates massive demand for BNB, a thing that could always have very positive impact on the price of the crypto asset, clearly giving it a hedge over Ethereum.
Conclusion
As you can see for yourself, quite a lot of innovation is being built around BNB, preparing it to be one of the most utility-driven token in the crypto market. The point of this article, however, is not that BNB will replace ETH. Rather, this article argues that the BNB is a perfect token for those who feel that ETH has become too expensive. BNB has all it takes to reach over $1k per coin in the months ahead if this pace of development around it continues.
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Great factors brought to our attention and while I didn't miss on Ethereum, I hold a little bit of both. Binance Smart Chain is just lovely to be used for DeFi, participation into the Liquidity Pools is much easier and the fees are quite low.
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I think that you've summarised the reasons why people are embracing the Binance Smart Chain. A lot is really taking place there. Just look at the price of BNB today. Good to see you around.
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Interesting, let me ask you a question. If you were to go into benchmarking in terms of market cap and such, which companies from the non-crypto sector would you see as a suitable peer? Nasdaq Inc, DeutscheBank, RobinHood - for example, all have some intersections, but are of course only comparable to a limited extent. Do you have a company with a better fit in mind?
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Hi, I think that companies involved in robotics and AI are worth to consider. They appear hot and future proof.
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Do you feel like elaborating on that? Do you mean solely in terms of potential growth or do you see overlaps in functionality that could suggest that an existing "market value" could be adapted by, in our case, Binance?
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Hello, sorry I simply do not know much about the stock market and do not think I've the requisite knowledge to express an opinion on this matter. Cheers!
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BNB was 35$ when I brought it, and it went to 75 and now 135$!!
That Pancakeswap DEX is etting much used which is built on BSC.
Yeah,,,it could go to 1000k... Also did you know BSC was built on Cosmos Blockchain and now Atom token took off too.
I am going through Venus now, which is a dex builth on BSC and price is doing well, its like compound protocal on Ethereum.
I am exploring to sell my Compound tokens for alternative coins.
Cardano is coming up and it also promises now transaction fees, scalability and inteperobility and Dexs on Polkadot too...
Lots of promising project to pick and choose and invest.
I saw that I can stake my BNB tokens on BSC too...not bad, have to use that Binance Chain Wallet though. It's useful, I can transfer ERC-20 tokens from Etereum Blockchains to Binance Chain and back, and I think there is lesser transaction fees.
So, I say BNB is a must coin to buy anyway. And worth exploring the chain too, has quite some useful use cases.
Although I don't know if I should deposit on these DEx like Pancakeswap or Venus, but I am looking to get the Venus token anyway for its price appreciation plus stake it if possible. Lots to learn though.
Thesedays, doing staking, and learning, I am leaping ahead in my crypto adventure(:
You were really lucky to have got in this early. The future looks pretty bright for BNB and, of course, for the investors. It is still undervalued at this price.
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I don't regret buying BNB and moving everything from the Ethereum network to the BSC. The only thing I regret is not doing it earlier. I'll keep buying BNB because it could go to $1000 without hesitation.
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I think you made a very smart move. Many still did not have the courage and balls to do that. I'm glad you did. Let's hope for the best.
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I think BNB will hit $1k this year. There is a slow migration from ethereum to the BSC. This is another strong bet for 2021. Start stacking fellas!
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I completely share your sentiments bro. The deflationary nature of BNB even positions it more for a surge above $1k. I hope you've readied yourself. Cheers!
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Oh, I'm loving the Binance Smart Chain after dealing with Ethereum for quite a while.
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You're not alone. Everything is really looking good at the moment.
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