BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’

Is BNB setting the stage to replace Ether as the second-largest digital asset or acting as another funnel for ETH DeFi?

BNB is enjoying an explosive rally, hitting new highs every day.

Today, BNB went to nearly $640. Binance CEO Changpeng Zhao, meanwhile, is doing all he can to send it even higher as he reminded his 1.4 million followers on Twitter that BNB burn is coming in a few days.

“When you burn coins, they are taken out of circulation forever. It increases the value of the remaining coins,” tweeted CZ.

BNB is now the third-largest cryptocurrency with a market cap of $92 billion, while competitor Ethereum sits at second place with $250 billion.

Some people are now questioning if BNB can replace ETH. ETH -0.28% Ethereum / USD ETHUSD $ 2,144.39
-$6.00-0.28%
Volume 21.71 b Change -$6.00 Open $2,144.39 Circulating 115.44 m Market Cap 247.56 b
2 h Keep Network to Launch An Updated Bitcoin to Ethereum Bridge, tBTC Protocol V2 9 h Topps Launching its Flagship Baseball Card Collection in NFTs in Partnership with MLB 10 h BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’

Up over 1,440% YTD, BNB started uptrending this year like all the other cryptos; however, the real rally started in late March thanks to the growing usage of the Binance Smart Chain.

BSC, which was first unveiled a year back, is currently recording more than 4 million transactions per day, with the highest number of 4,995,155 transactions on April 8, while the lowest number of 38 transactions was seen on August 30, 2020, as per BSC Scan.

In comparison, the second-largest network is recording just over 1 million transactions per day, with the highest number of 1,406,016 transactions set on September 17, 2020.

As of April 11, there were over 64.4 million on BSC in terms of unique addresses, a huge increase from just 1.26 million exactly two months back. Meanwhile, over the past six years, Ethereum has achieved a total of 147.3 million unique addresses. However, not everyone is impressed with these numbers; as Ryan Watkins of data provider Messari says,

“Price action will cause people to believe anything. I don’t care how high BNB or CAKE go, it won’t change that they’re still copycats. It’s one thing to view these assets as a way to make money, it’s another to view them as innovations that push this industry forward.”

Watkins argues that this growth is the result of centralization, that’s it, and instead of choosing BSC for speed and scalability, he says Solana is the way as it’s more decentralized than BSC. SOL 3.00% Solana / USD SOLUSD $ 28.63
$0.863.00%
Volume 309.37 m Change $0.86 Open $28.63 Circulating 270.02 m Market Cap 7.73 b
10 h BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’ 11 h The Reasons for Low Gas Fees on Ethereum Network, Despite Heightened Activity 4 d BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher

Meanwhile, users only care about how easy and cheap a network really is, as can be seen with BSC TVL getting ready to hit $30 billion.

Like BNB, the projects built on BSC also enjoy immense gains, with CAKE being the most popular one with a $4.16 billion market cap, up 4,520% YTD. PancakeSwap has also surpassed Coinbase Pro in volume today and is doing about 2.5x of the biggest DEX Uniswap. CAKE -0.69% PancakeSwap / USD CAKEUSD $ 26.34
-$0.18-0.69%
Volume 1.25 b Change -$0.18 Open $26.34 Circulating 149.96 m Market Cap 3.95 b
10 h BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’ 3 w Total Value Locked in Binance Smart Chain (BSC) Surpasses $15 Billion; Brave Joins in with Wrapped BAT 3 w 0x and Matcha Becomes the Latest Protocols to Join Binance Smart Chain (BSC) After Alpha as Part of “Multi-Chain Future”

Despite the success, these tokens aren’t really available for trading on many or any centralized exchanges.

According to Spartan Black of crypto fund The Spartan Group, this is the reason DeFi tokens are underperforming for the last few weeks. He said,

“BSC is having its own DeFi summer….so much alpha to be discovered in BSC (XVS, CAKE). If you are wondering why Ethereum DeFi coins are lackluster, it’s because of the huge valuation gap that still exists between the BSC coins and ETH equivalents.”

And until BSC-based DeFi tokens have their own DeFi summer, “money isn’t rotating back to ETH DeFi coins.”

Despite BSC’s growing usage, it doesn’t mean other chains’ demise; rather, many believe it will only onboard more users to the decentralized finance (DEFi) space.

“BSC adoption is foreshadowing what L2s will do to Ethereum,” said Santiago R Santos, a partner at ParaFi Capital. “My thesis is that BSC is another funnel for ETH DeFi.”

Read Original/a>
Author: AnTy

Related Articles