Binance coin (BNB), the cryptocurrency for the Binance Exchange, and also for the Binance Smart Chain, has replaced Tether as the third largest cryptocurrency by market cap. It now has a market cap of nearly $40 billion, compared with just under $34 billion for Tether.
In just three parabolic days, BNB has risen from $126 to an all-time-high of $284, more than doubling over this period. Currently, the Binance cryptocurrency is hovering at around $257, an inevitable pull-back after such a sharp spike in price.
Trading volume also soared today, reaching its highest ever at over $14 billion, a huge increase on yesterday’s volume of about $9 billion.
Binance Smart Chain
One of the main reasons for the recent success of the BNB coin is most probably the Binance Smart Chain. The Binance Smart Chain is more advanced than the Binance Blockchain, and its main difference is that it enables developers to build dApps on it by using smart contracts.
It is also compatible with the Ethereum Virtual Machine (EVM) meaning that dApps on Ethereum can be ported over without issues. Gas fees are paid in BNB rather than ETH, and these are extremely low in comparison. The high gas fees being paid on the Ethereum blockchain are a hot topic of conversation right now.
If you add the fact that the Binance Smart Chain is also really fast (just a few seconds for each transaction compared with a few minutes for Ethereum) then you have a recipe for success.
One of the dApps operating on the Binance Smart Chain and starting to get huge traction is Pancake Swap. It recently became the first $1 billion project on BSC, and yesterday saw it overtake the Ethereum-based Uniswap by average daily trading volume – $1.6 billion compared with Uniswap’s $1.2 billion.
Cryptocurrencies such as CAKE (the native utility token for Pancake Swap), BURGER, and FRIES, are all amusing sounding tokens, but their prices are really rocketing as users take advantage of farming and staking in the latest Binance DeFi mania.
CZ, the CEO of Binance, tweeted that Uniswap users should move over to the Binance Smart Chain. Whilst Ethereum is still the number one blockchain in the cryptocurrency space, still a long way ahead of its competitors, it would appear that some are doing exactly that.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.