Binance Coin (BNB) has been on a roll for some time. TheDechained recently reported that the asset was set for an exponential explosion. That report has now come to fruition as the asset just reached an all-time high of $637.44 according to available data from CoinMarketCap.
This means that BNB’s price has risen by nearly 1500% since January this year. Some of the reasons behind the price spike has been the slow speed of Ethereun’s transactions and its huge gas fees.
In addition to that, Binance Smart Chain has given Ethereum a good run for its money in providing a viable alternative for the decentralized finance (DeFi) industry.
Interestingly, Binance Coin’s market cap has also reached $64 billion. This means the native token of the crypto exchange company has now surpassed the market cap of some notable institutions like Santander, the Bank of Montreal, UBS and a host of others.
Will Binance Coin Market Cap Usurp That of Ethereum?
Currently, there is no contesting the fact that Ethereum is the second largest crypto asset by market cap. However, that could be a different story in some time to come as BNB is currently about 35% of the market cap of ETH. What this means is that what Binance native token would need to overtake ETH is less than triple of its current value.
Ryan Watkins of Messari put this to the centralization of Binance Smart Chain (BSC). He said on Twitter that BSC’s speed and scalability is due to its centralization. Binance has taken advantage of its influence and reach to pull in new users in various DeFi projects. To him, this is why Binance is having the upper hand.
The reason why BSC is faster and more scalable is not because of some magical technological innovation.
No, it’s instead the magic of centralization.
BSC is an Ethereum fork with a centralized validator set.
That’s it. Nothing more. https://t.co/dAeWsdolg6
— Ryan Watkins (@RyanWatkins_) April 12, 2021
In addition to that, BNB token holders can use it to pay for trading fees, network fees while serving as the native token of the Binance ecosystem. All these made it gain traction among users. BSC makes use of Proof of Stake Authority which doesn’t require miners and thus cuts off huge transaction fees.