Is Binance Going to Topple Ethereum Soon?
Binance’s value is continually rallying upwards over the past few months and has made BNB coins the world’s third most valuable cryptocurrency asset. On the day of publishing, the Binance coin’s current price is $284.12, and it has a daily trading volume of $7,162,003,099.44. BNB’s market cap is $42,570,646,429.71, and it has a circulating supply of 154,532,785 coins.
Binance is one of the leading crypto exchanges with the world’s highest crypto trading volume. Binance coin or BNB was the most initial offering of Binance three years ago before the Binance crypto exchange was created. The number of BNB coins initially offered at the ICO was 100 million. BNB was initially designed as an ERC-20 token similar to the one running on the Ethereum Network. BNB facilitates crypto payments that can’t be mined and are utilized for payments on the Binance exchange.
Binance’s 2021 Global Crypto User Index report shows that in recent times the number of crypto traders has increased in the market compared to previous times. On Friday, Binance toppled Tether (USDT) as its price surged by 50% and acquired the third-position on the digital coin ranking list. Experts believe that if BNB keeps growing this way, it may soon replace ETH on the digital coin ranking list. This is because about 14.7% of ETH’s circulating supply has been lying inactive for 2-3 years. Also, ETH 2.0 staking is continuing with 3.174 million ETH remaining locked in the deposit contract. Ether is currently priced at 1871.38 USD, and its daily trading volume is 24,263,216,149 USD.
Another reason for the increase in Binance’s BNB coin price is that there is a multi-fold rise in the number of crypto traders in recent times, thereby leading to a surge in demand for DeFi exchanges. As the Ethereum blockchain still occupies most of the DeFi space, it is undoubtedly creating pressure on DeFi investors’ wallets. So, investors and traders are looking for alternative options, which has led to the Binance Smart Chain’s (BSC) ultimate gain.