Binance coin to challenge Ethereum?

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Binance Coin

Is there a new contender for a place among top cryptocurrencies?

At NewsBTC, Yashu Gola covers the emergence of Binance Coin against legacy frontrunner Ethereum, which has been the runner-up to Bitcoin for most of the history of cryptocurrency markets.

Now, though, Gola reports that high Ethereum blockchain fees (along with, possibly, other factors) are forcing some decentralized applications or “dapps” to use the Binance Smart Chain instead.

Gola reports that on February 17, for example, the Binance chain handled 2.12 million transactions, while the Ethereum chain handled 1.26 million.

Also, Gola says, the overall crypto boom led by Bitcoin values is good for Binance Coin, too.

“Corporate houses, including Tesla, MicroStrategy, Square, and Bitwise, bought billions of dollars worth of Bitcoin to diversify their balance sheets with cash alternatives,” Gola writes. “Meanwhile, billionaire investors such as Paul Tudor Jones and Stan Druckenmiller also promoted cryptocurrency as digital gold— a hedge against a depreciating US dollar.”

Meanwhile, Binance, under the leadership of Changpeng Zhao, is widely known as a top cryptocurrency exchange, but it also has other components of a broader fintech ecosystem. It’s also known for quickly introducing wider ranges of trading pairs in its ecosystems.

“Binance.com, Binance.US, and the Binance DEX have continued to aggressively list a myriad of trading pairs, including pairs denominated in BNB,” writes Josh Olszewicz at Brave New Coin. “Fees for both exchanges can be paid with BNB and non-BNB assets, with fees paid in BNB currently attracting a 25% discount. Additionally, Binance.com and Binance.US, have a tiered trading fee discount program for accounts holding a significant BNB balance. These fees are much lower than Binance’s competitors.”

As for the BNB coin itself, value has climbed 600% in one month, and as Binance Coin goes parabolic, analysts are looking harder at this altcoin that has about a quarter of Ethereum’s market capitalization right now. What’s now is not what’s to come – keep an eye on BNB, and Polkadot and other altcoins as we see a maturing of the defi industry as a whole.

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