The price rally of Binance Coin (BNB) has reached a new dimension: BNB has not only overtaken the top coins Polkadot (DOT) and Cardano, but also recently the Stable Coin Tether. Binance boss Changpeng “CZ” Zhao is now courting the Ethereum dApp developers. The market update.
In the field of tension between CeFi and DeFi, Binance has created its own niche: With the Binance Smart Chain (BSC), the crypto exchange launched its own blockchain for smart contracts in September, which primarily targets the booming decentralized sector Aims financial services. So far, with resounding success: The price of Binance Coin (BNB), which has a central function in the smart chain that is comparable to Ethereum, literally exploded in February. At around 6:00 a.m. on February 19, BNB printed a fresh all-time high of $ 267.
At the time of going to press, BNB is trading at a whopping 30-day plus of almost 500 percent at $ 256. The Binance Coin has not only overtaken Cardano (ADA) and Polkadot (DOT) in terms of market capitalization. Even Tether, the stable coin that dominates Bitcoin trading, has been knocked off its pedestal from BNB.
The success can mainly be attributed to the DeFi sector, which is rapidly picking up speed at the BSC. And Ethereum is increasingly digging the water away.
PancakeSwap has also increased its trading volume significantly. Within 24 hours, traders moved assets worth over $ 730 million to PancakeSwap. That means a growth of 32 percent compared to the previous day. At Uniswap, however, the trade has slumped by 15.5 percent to 845 million US dollars. All transaction fees on PancakeSwap are paid in Binance Coin.
One of the main factors behind the rapid rise in Binance Coin and BSC-based dApps is the ongoing fee problem with Ethereum. The fees that users have to shell out for individual smart contract operations (aka gas fees) are sometimes extremely high due to the chronic load on Ethereum. For small investors in particular, this is a stumbling block for entry into the DeFi sector. Smart contracts play a central role in token swaps, yield farming and liquidity mining .
Changpeng Zhao is now campaigning aggressively for the Uniswap developers to move their DEX to BSC. And can’t resist a swipe at Ethereum. On the morning of February 19th, “CZ” tweeted:
Uniswap should consider switching to #BSC. It’s not easy to run with weight on your ankles. Follow the users.
Binance-Chef Changpeng Zhao via Twitter
Notwithstanding the threat of competition from BSC, Ethereum, the “original” among the smart contract platforms, has also soared to a record level. On the night of February 19, the Ether price reached the $ 1,950 mark for the first time.
This is remarkable in that the transaction fees at Ethereum increased fivefold in January 2021. Paradoxically, the rise in fees could have increased the demand for ether — after all, the gas fees are paid in ETH. However, analysts such as recently crypto fund manager Grayscale see the biggest price driver in the prospect of Ethereum 2.0. The switch from Proof of Work to Proof of Stake, which has already been initiated, will not only result in lower fees and significantly improved scalability; Staking will also give Ether Holders the opportunity to generate passive income. This is already possible with Binance Coin. ETH2 is becoming, as Grayscale put it, a “productive commodity.” The crypto asset manager therefore still considers ETH to be undervalued.
It will be interesting to see how the battle of smart contract platforms will develop — with Cardano and Polkadot , further, highly scalable crypto networks are already in the starting blocks.
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