Many crypto traders and analysts have been paying close attention to the Binance Coin (BNB) for some time now. This follows its glorious ascent to an all-time high of $686.31, which briefly saw its market cap top $90 billion, according to CoinGecko.
In a YouTube video by Nicholas Merten earlier in the year, the crypto trader observed that the ongoing furious rally by BNB was about to spark a new narrative. And it has.
The video, which was uploaded in February, shows that BNB’s price was at, $342 by then. But now, the coin has appreciated by almost two times in less than 12 months. Thus, some experts believe that it could soon take over the decentralized finance (DeFi) space before the end of the year. So, let’s have a look at whether BNB will ever flip ETH.
The Rise of Binance
The less-decentralized Binance Smart Chain is considered a competitor of the Ethereum blockchain. And with 35% cheaper transaction fees, the BSC managed to overtake Ethereum in the first three months of the year for daily unique active wallets, according to DappRadar’s 2021 Q1 overview report on April 1.
This kind of success by Binance Smart Chain has played a significant role in BNB’s rapidly growing value too.
Can BNB Flip ETH? Expert Feed Back by
Mr. Merten
“The ironic thing overall is that the Binance Smart Chain is extremely similar to Ethereum. They share the similarity in that Binance Smart Chain is a direct fork off of the Ethereum blockchain, in the sense of how it functions, how solidity and code can be brought over from the traditional Ethereum applications that exist into the Binance Smart Chain ecosystem. So all that functionality is seamless…
However, the big difference here is that Binance Smart Chain has a few select validators in this case. Unlike Ethereum, which goes through a mining process and has the thousands of nodes worldwide in a very decentralized format, Binance is a lot more centralized. That’s not inherently a terrible thing immediately, but as more assets grow on the network, just like how you have more assets on a centralized exchange, that can be a cause for concern…
The benefit of being more centralized in the interim and going towards a path of possibly more decentralization, Binance Smart Chain has been able to actually build out a system where gas fees are practically non-existent,” Mr. Merten once said.
In addition, Mr. Merten notes that although the Binance Smart Chain comes with the perks of low fees, network effect, and a reputation. He believes that ETH is not out of the race.
Conclusion
In the last few months, BNB has been one of the best performers in the market. Among the top four, it is the best performer with a +700% price increase. It has by far surpassed Ethereum (ETH). This is despite the biggest altcoin being in price discovery. As such, some analysts have been suggesting that the Binance coin could flip Ethereum.
“If BNB and ether continue to grow at the same rate, BNB will flip ether within the next two to four months,” Mancini, a research analyst at Trade the Chain, once said.