Can BINANCE coin flip ethereum. All this time people have been talking about cardano or stellar or eos or any of the other dozens of blockchains out there. that are going to come along and flip ethereum, take down the smart contract king. But perhaps in the end it'll be binance smart chain which steals the crown from ethereum.
In this article i'll lay out the reasons why binance is just going crazy right now. why it could actually end up flipping ethereum and if I think that scenario is even a likely possibility.
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So let's get into this topic Binance coin(bnb) has been absolutely booming recently hitting a new all-time high today. Binance smart chain bsc for short has been just going crazy. so many users are piling into just all the crazy defy stuff happening over on bsc the bnb cryptocurrency is quickly becoming one of the most relevant and most used cryptocurrencies in the market.
But why is this the case what the heck is going on with bNb . well, it's all about utility people need bNb coin. first let's start off with its utility on the centralized binance exchange so using the bnb token on the biggest exchange in the world using the bnb token to pay for your fees gives you a 25 % fee discount taken together with the 10% bonus for using my link. you can actually get a whopping 35 %off of your trading fees. meaning that every trade only costs you 0.065 percent.
this is one of the cheapest rates in the industry. COINBASE pro by comparison 0.5% that's almost 10 times as expensive. so yes there's a very big demand to get this token to reduce those fees for trading on the binance exchange. the bnb token also allows you access to the frequent and very profitable launch pools and launch pads happening on the binance centralized exchange. and perhaps most importantly every quarter binance does a token burn based on trading fees paid each quarter in the exchange. this burn will continue until half of the entire supply of bnb has been burnt. meaning that binance right now is a deflationary token.
But the centralized exchange will add some very interesting token mechanics and a real business model for that token that's not why i write this article. it's actually about the runaway success of the binance smart chain. that is what driving a whole new life into the bnb token. this is you know definitely the main driving factor right now for the surge in the bnb price. ethereum has in essence become its own worst enemy with fees reaching truly absurd levels for the most basic interactions on ethereum these days. transferring tokens can cost like 20 bucks a trade on uni swap can cost a hundred bucks using ethereum d5 can literally cost hundreds of dollars. even though fees are kind of down today this has been the general picture for the last few months for ethereum stepping into this obvious void in the market it's bsc they stepped in and they've managed to fill in that important market niche catering to basically non-rich users.
Ethereum right now is a playground for the wealthy that's just a fact if you can afford the fees on ethereum you're not your average investor right the fees can get insane sometimes. if you can afford to pay ethereum fees congratulations you made it. crypto was made to lift up the average man right but until ethereum scales it will not fulfill that vision not with crazy fees like this. there is a reason why bsc was able to go from basically zero percent market share to capturing more than 15 percent of the total value locked in d5 in just a few months. users are voting with their feet
Users are actually going people are sick of paying the insane fees and bsc is giving them good options. they've got lots of d5 stuff going on they've got a good user experience with trust wallet and metamask, got cheap fees and i knoW bsc leaves a lot to be desired when it comes to decentralization issues. very well aware of that but again people are voting with their feet they want access to d5 and they're not so concerned about these issues. and although bsc has of course been getting a lot of attention. it is far from the only game-in-town thing that's worth pointing out tara luna for example their mirror protocol has managed to attract like 1.8 billion dollars in total value locked up in their protocol. so yes other chains are also picking up steam.
but bsc is just way out in front just captured an incredible percentage of the market share. Now does the rise of you know binance smart chain means that ethereum is dead? it has no future. no no far from it anyone telling me that they're not paying attention what's going on. ethereum more than any other blockchain is pressing hard to keep their market share. things that are happening in 2021 for ethereum include an end to proof of work mining that's massive news, a full transition of proof of stake on ethereum 1.0 . that's crazy it's going to be really really big. optimism very hyped layer 2 scaling solution that's still coming later this year mid-year approximately. starkware a major layer 2 scaling solution it's already shipping products, polygon the biggest ethereum layer 2 solution is already working . you can use it today they're integrated with major d5 protocols like ave and of course then we have eip1559 that's going to bring in fee burning to ethereum . and ethereum 2.0 still coming still good not this year but it's still coming so no i'm not counting ethereum out.
I'm a major ethereum bull as you've probably noticed by reading my content. it is still the premier smart contract platform but we also have to be honest we have to admit. how crazy it is that bsc has managed to capture 15 market shares in less than six months. this is in all honesty the first real time that ethereum has had any actual competition for market share. no other blockchain network in the last five years they've not even come close to doing what bsc has done in terms of getting users. and getting people to actually use products on their freaking blockchain.
but does that mean bsc is going to flip ethereum. i have my doubts about that even though you see a lot of people floating this idea on social media right now . remember ethereum is not stagnant the ethereum developers are working day and night on upgrades to bring the network forward . and in terms of market share we must also remember that in d5 ethereum's still the king here with around 80 percent of the share.
and it's also exploding on other chains tara, avalanche, solana , BINANcosmos, rumblings and other chains too so there's a lot of competition. part of me even feels like simply the rhetoric that bnb will flip ethereum that may be a short-term topping signal for binance coin. we'll see if that plays out to be true of course but anyway will binance actually flip ethereum . i think it's unlikely but it's possible to do so would require ethereum to basically remain flat. which it won't and for bnb to add another 170 billion dollars to its market cap. which is one hell of a feat if you ask me and even if binance coin does get up to the current price level of ethereum in terms of market cap. then by that time ethereum probably will have doubled or tripled in market cap over the same time frame. but flip or no flip doesn't really matter when it comes out to who's in position two or three.
what is certain is that until ethereum manages to scale other chains are going to continue to suck away market share and right now the leader of sucking away market share is binance smart chain . binance has by far been the most successful but it is not alone in the smart contract platforms there are others gunning for that market share.
your question for today do you think that binance coin can actually flip ethereum at some point let me know down below in the comments section
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