Crypto Altcoin BNB Smokes Bitcoin and Ether with a 1,300 Percent Gain in 2021
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This year, the old guard of cryptocurrencies lost ground to the tokens with higher returns. The researchers predict that the trend may continue.
Among the three largest digital tokens by market value, Binance Coin, or BNB, significantly outperformed its two largest rivals, Bitcoin and Ether. The coin, issued by global crypto exchange Binance, gained roughly 1,300 percent in 2021. By comparison, market leader Bitcoin was up 65 percent while Ether, the second-largest token, was up 408 percent. hundred.
The market leader, Bitcoin, was up 65 percent in 2021, while Ether, the second-largest token, was up 408 percent.
BNB is widely used on Binance, the world's largest crypto exchange by volume. It is also the native currency of Binance Smart Chain, a blockchain platform that supports smart contracts for use in decentralized finance (DeFi) and other applications.
DeFi offers financial instruments without relying on intermediaries such as brokerages, exchanges or banks, but uses smart contracts on a blockchain. So, with BSC gaining traction as a challenge to the Ethereum blockchain, that helped drive gains on the BNB token.
What is Binance coin BNB used for? It's cheaper?
The coin is used as a utility token for the Binance exchange and allows users to pay for transactions and trading fees at a lower rate than they would with other tokens. Binance uses the token 'burn' process, which means that they use the proceeds from token sales to buy back more BNB and then burn (destroy) them.
It supports trading over 500 currencies, including Bitcoin, Ethereum, Litecoin, and its own native BNB tokens. Although US-based users will pay a bit more on Binance, it is still much cheaper than using rival global cryptocurrency exchange Coinbase.
On average, you'll pay 0.50 percent per Coinbase transaction plus additional convenience charges depending on your payment method, so you could pay up to 4 percent per transaction.
Other altcoins, or 'Altcoins', made significant gains in 2021, benefiting from an explosion in investor interest in digital assets and an expansion of the crypto ecosystem. Solana and Fantom, currencies connected to other blockchain platforms that support smart contracts, outperformed the returns of Binance Coin, for example.
While Bitcoin showed strength in 2021, analysts have seen a steady flow of capital trickling into Altcoins. The firm's analysts predict the strongest momentum in tokens related to the metaverse and GameFi, along with 'ETH killers' targeting Ethereum.
In a simple way, we can define GameFi as the combination of video games (Gaming) and decentralized finance (DeFi). The technology used for this type of video game is blockchain technology, which allows players to be the only verified owners of the virtual elements of the game.
'ETH-killers'? The past year brought astronomical gains for companies like Solana, Polygon, Terra, Fantom, and Avalanche, which ate up half of the slots in the top 10. These emerging blockchains are commonly known as 'Ethereum killers' as they represent competition for the market leader.
Will Binance Coin BNB overtake Ethereum in 2022?
The latest analysis on the Binance Coin BNB price outlook in 2022 indicates that while key stock benchmarks worldwide are trading near their all-time high, the Binance BNB coin has plummeted around 16 per cent. percent in the past 30 days due to a sudden drop in Bitcoin. prices.
Even after the drop, the price of BNB is up 1000 percent from the previous 354 days. Launched just a year ago, BNB's Binance Smart Chain supports the Ethereum virtual machine. The transaction fee of the Binance chain is much lower compared to the Ethereum chain.
If these early-stage projects continue the initial success, then Binance's BNB coin could soon surpass the Ethereum chain in total transactions.
If these early stage projects continue the initial success, then Binance coin BNB and BSC could soon surpass the Ethereum chain in total transactions running daily on its blockchain. Currently, each block on the Binance chain is confirmed in approximately 3 seconds.
In the last 24 hours, more than 7 million transactions were executed on the Binance chain. The short-term prediction for BNB looks positive. Short-term indicators suggest a state of equilibrium between the forces that push the price of BNB up or down, so it is considered that prices will stabilize in the coming months.
The research further shows that the BNB price of the Binance coin could first rise to $ 570- $ 575 (Dh2,093 to Dh2,111) and then rise to $ 620 (Dh2,277). However, prices are expected to average $ 500 (Dh1,836) for BNB.
If the price exceeds $ 575 (Dh2,111), BNB could first rise to $ 617 (Dh2,266) and then oscillate between $ 668.40 (Dh2,455) and $ 690.50 (Dh2,536.18) , which will mean that the correction may be for the significant gains that the BNB price achieved this year.
However, not all analysts share the same optimism. According to the website CryptoPredictions.com, the recovery of Binance Coin is stalling and it will start to give negative returns and thus erode investor wealth throughout the year 2022.
Is it safe to invest in Binance Coin in 2022?
Is it safe to invest in Binance Coin in 2022?
The reason why the price of Binance Coin BNB has exploded in popularity due to Ethereum's high fees, is Binance Coin a safe asset to invest in?
Binance has made great strides in catching up with Ethereum in terms of trading volume. They both also have extremely similar apps built on top of them, like decentralized exchanges and lending and lending platforms.
Evacuating crypto assets for their quality as an investment opportunity can be a difficult exercise. With something like Bitcoin or even Ethereum, it is easier to assign value when analyzing its decentralization.
Bitcoin, for example, has a large number of geographically distributed nodes and miners and has survived over 11 years of ups and downs. With Bitcoin, you can know with a high degree of certainty that no company, government, group or individual is in control. Instead, the collective of its users determines its future, which means that a free and open market only determines its price.
While Ethereum has half as many nodes as Bitcoin, it is still orders of magnitude more distributed than Binance Coin. If you are interested in speculation and trying to make money, perhaps Binance Coin could be an opportunity as more and more people abandon Ethereum to seek cheaper transactions. If you are interested in building systems without central control, then an investment in Binance Coin would be adverse to that cause.
- With contributions from Bloomberg
