Binance burns 16 million BNB worth of BNB tokens; transitions from the ERC20 token version of BNB to the BEP2 tokenBNB is on the move following a price correction after breaking past the $300 mark. Market participants expect better Binance coin performance as the market recovers. Based on its performance, it could take Ethereum‘s 2nd spot market cap position in the future.
BNB Vs ETH price performance
The crypto winter is taking a massive toll on the crypto industry and some coins are taking a bigger hit than others. A quick performance comparison between Binance Coin and Ethereum in this winter market indicates the former is more resilient.
The chart indicates Binance coin Vs Ethereum performance year to date (YTD). Despite high volatility, Binance coin has assumed a relatively positive price growth.
Ethereum has lost about 65% of its value from its opening price of $3,683 this year, while Binance coin has lost 40% from $512.
For Binance coin to pass Ethereum, it would have to reach Ethereum’s market cap of $145M. To reach that valuation, Binance coin will have to attain a price of about $900 (300% price growth).
Analysts suggest the crypto market will experience high price growth in the next bull market. At that time, Binance coin could possibly register a new all-time high and surpass Ethereum, picking the 2nd position after Bitcoin. News, network adoption, and market crashes will affect the price dynamics.
Ethereum blockchain Vs Binance Smart Chain
The underlying protocols of BNB and ETH also play a vital role in their future performance.
A battle has ensued within the crypto industry where the decentralized blockchain protocols fight for primacy. Metrics that will decide which chain succeed include transactions per second, the average fee per transaction (gas fees), scaling solutions, and the rate of adoption by developers and users.
There are over 25 major blockchain platforms in the market that are becoming increasingly competitive.
With pressure mounting on Ethereum from its competitors, the platform is gradually hemorrhaging users to better-performance protocols like Solana, Cardano, Tezos, Algorand, and Polkadot.
Following the Merge, Ethereum lost a good chunk of its mining community, which has since transitioned to other mining pools like Ethereum Classic (ETC), LiteCoin (LTC), and Dogecoin (DOGE). Merge proponents, praised the move citing a greener environment, leaving the energy-intensive mining to Bitcoin and other POW assets.
Before Binance launched its native blockchain, Ethereum ruled the smart contract market. Now, Binance Smart Chain (BSC) is emerging as a prominent rival to Ethereum.
At first glance BSC and Ethereum blockchain look similar, smart contracts built on BSC are compatible with the Ethereum Virtual machine (EVM), which makes it easy for developers to switch between the two blockchains. Despite the compatibility and similarities, there are noticeable differences between the two.
The average block time for BSC is 3 seconds while Ethereum block time ranges between 30 seconds to 16 minutes. Both use a gas fee model for every transaction with Binance Smart Chain being the cheaper model.
In terms of DeFi usage, Ethereum dominates the market. According to DefiLlama, Ethereum has a total value locked (TVL) of $23.51, which is impressive compared to the Binance Smart chain at $5.39B.
Final word
Binance Coin is showing a lot of promise and might arguably win this supremacy battle in the long run. Changpeng Zhao, CEO of Binance, has been at the forefront of advocating for transparency within the crypto industry. Binance is so far the largest exchange by trading volume and creates great utility for Binance coin.
Will BNB overtake ETH? BNB presents a good case but no one can say for certain. The correct answer to that question could be subjective, depending on what users seek as far as blockchain attributes, utility, and performance.
Also read:
A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
