Binance (BNB) Becomes 3rd Largest Cryptocurrency and Dethrones Tether (USDT)
Binance native token BNB price reaches new heights and has just dethroned Tether to become the 3rd biggest cryptocurrency based on market cap. This surge in price is thanks to the rise of Binance Smart Chain (BSC) and other protocols of its ecosystem, such as PancakeSwap.
Binance Coin (BNB) Breaks All-time High
Binance ecosystem utility token Binance Coin (BNB) has experienced a massive increase in price in recent weeks. In today’s early hours, BNB set a new all-time high of $284 which is an increase of 40% in the past 24 hours. This latest uptrend in price meant that BNB surpassed iconic stablecoin Tether to become the third-ranked cryptocurrency based on marketcap. At the time of publication, the market cap of BNB is nearly $40 billion.
This increase in the price of BNB is driven by the craze around the Binance Smart Chain (BSC). BSC has enjoyed unprecedented success with developers switching to the smart contract network to build protocols. Unlike Ethereum, BSC-based applications have a better infrastructure to accommodate a massive influx of users, thereby reducing transaction fees.
With BNB playing the role of fuel for transactions on BSC, it is no surprise that the price of BNB has risen in recent weeks. To put the current bull run into context, the price of BNB fell to $6.38 in mid-March 2020. Since then, BNB has witnessed a continuous rise and is currently up by more than 4,300 over this period.
Will BSC Overtake Ethereum As Leading Smart Contract Network?
The recent success of BSC has led to speculations on whether it could surpass Ethereum in the future. Binance CEO Changpeng Zhao recently praised BNB and BSC in a tweet in which he expressed his hope that more developers will jump on the BSC train. CZ even invites popular decentralized exchange Uniswap to migrate from Ethereum to the Binance Smart Chain in another tweet.
Despite the significant inroads by BSC, there remains a fundamental problem preventing it from surpassing Ethereum. BSC is fully centralized and managed by a single entity, Binance. Whereas Ethereum and its dApps are fully decentralized. Nevertheless, BSC continues to thrive due to its lower transaction fees and ability to handle large transactions.