In the last 30 days, the value of the Binance Coin (BNB), the native cryptocurrency of Binance (the leading digital assets exchange in the world by trading volume), has increased rapidly by the rate of 560%. The new price of Binance Coin is estimated at $340, which is alarmingly high compared to its previous price of $40. Due to these changing dynamics, famous crypto analyst, Nicholas Merten, expressed his opinions on the situation.
In his DataDash video, Nicholas Merten conveyed his opinions to his 390,000 YouTube subscribers. The opinions were regarding the rapid rise of cryptocurrency because of Binance Smart Chain (BSC), which is essential, an Ethereum Virtual Machine (EVM), that has a blockchain with a low transaction fee. He argued that the demand for the Binance Coin’s value is rising in the decentralized finance market. This was the case because the users of the Binance Coin increased substantially in the market. The number of users increased so that users could avoid the high fees of the Ethereum network.
Reportedly, Binance Coin has become the third-largest digital currency in the market. This is the case because Binance Coin has attained more users in comparison to Tether’s USDT stable coin, Polkadot’s DOT, Pancake Swap (CAKE), and Uniswap, in terms of the number of users.
Due to the rapid rise in the value of the Binance Coin, analysts have argued that the Binance Smart Chain should overrun Ethereum; as a result, the company will become the primary blockchain to direct smart contracts and decentralizing applications.
According to Nicholas Merten, the Binance Smart Chain constitutes of certain and selective validators, making it highlight centralized. Whereas Ethereum contains thousands of nodes from around the world, making it follow a decentralized consistency. He said that this is a weakness of the Binance Smart Chain, and actions should be taken to introduce decentralized efforts. Nevertheless, he stated that the fact that the cost fee for the system is not that high, which can aid the Binance Smart Chain in asserting its influence across the globe.
Notwithstanding, he also affirmed that Ethereum might be able to survive due to their layer-two scaling solution. This solution will aim to maintain the company’s dominance in the market. Thus, Binance Smart Chain will have to assert strategies for influence accordingly.