CRYPTOCURRENCY
Binance Smart Chain Will Overcome Ethereum
The reasons why Binance Smart Chain (BSC) will be the next Ethereum
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Nowadays, almost all people worldwide know Bitcoin, the biggest cryptocurrency from its’ market capitalization. The invention spirit of cryptocurrency is avoiding the “Greedy of Bank”, especially after many people were suffered in The Financial Crisis of 2008. People started to create a new payment system.
Satoshi Nakamoto (an unknown person or group) invented Bitcoin in 2008. The next year, Bitcoin started to operate and released as open-source software. Bitcoin is a decentralized digital currency, where any transactions proceed without a central bank that can be transferred between users called a peer-to-peer network. The network nodes’ verification is done through cryptography and recorded in each ledger, called the blockchain. We can contribute to the blockchain to validate every transaction performed and get the compensation in the form of the coin. The process is called mining.
Every May 22nd, cryptocurrency traders celebrate Bitcoin Pizza Day, based on the first commercial transaction by Hanyecz who bought two pizzas for 10,000 Bitcoin (BTC) on May 22nd, 2010. If we use the recent BTC valuation worth about $50,000 per coin, Hanyecz bought two pizzas for approximately $500,000,000.
The innovation of cryptocurrency technology is unstoppable while you can create your own cryptocurrency under an ecosystem. Ethereum and Binance Smart Chain (BSC) are the best of them. Here are the examples of three tokens for Juventus, Paris Saint-Germain, and Atletico Madrid fans.
o perform a transaction in the Ethereum network, their computers to validate every transaction. The nightmare is starting here. On average, the gas fees you need to pay if you perform a transaction in Ethereum network is about $4.5 per transaction. $4.5 is just the average, we talk in a whole statistics. In some cases, your gas fee is more than the marketing you did. Here are the examples.
To swap (convert) 1 USDT (~ $1) to ETH, a user should pay $76. It is insanely crazy, I think. Now, what is next? To solve the gas fee in Ethereum network, some people think that there is a big chance to overcome this condition, “High gas fees are an opportunity for Ethereum competitors to grab a fair share of the market”. Binance Smart Chain (BSC) is coming to solve the problem.
In BSC, the average gas fee is about $0.0912 per transaction. It is about 49x cheaper than in Ethereum network. But how can I get these statistics? You can check it here.
What are the implications of the low gas fee in BSC?
Of course, people will find the low gas fee for their crypto transactions.
- In January, BSC generated $15 million in transactions and $24 billion in February (still counting now).
- The daily transaction is almost 2x more than on ETH.
- The chain is becoming the third-largest blockchain with the daily unique active wallet is about 50,000 when this article is written.
Maybe, you are asking why BSC data only from September 2020? Because BSC was launched in September 2020. You can imagine that the BSC’s growth is fantastic, only after established in the last 6 months, BSC became the third-largest blockchain ecosystem. Meanwhile, EOS and TRON were launched in 2018, and Ethereum in 2015.
- Two DApps on BSC, Venus Protocol (XVS), and Pancake SWAP (CAKE) grew vastly.
On January 18th, the price of XVS was $4.1 per coin. 1 month later (February 18th), it reaches the All-Time High (ATH) of $67.2 per coin and still finding the new ATH.
How about the CAKE? On January 18th, the price was only $0.71. Now, it worth $11.18 (still finding the new ATH) per coin.
- Binance also has its own token, called Binance Coin (BNB). The fast growth of BSC affects BNB price and volume.
In 2021, the BNB price rose from $37.67 to $185.01 (still finding the new ATH) for each coin, as shown in the following figure.
With all of the impressive BSC achievements, BSC can overcome Ethereum and become the world’s largest ecosystem. The price of some coins in the BSC also will become famous coins. For example, XVS is projected to become as worth as AAVE, CAKE will overcome SUSHI, and BNB’s price will be the same as ETH now (about $1,900).
That’s all. I hope this story can help you to understand the recent condition in the cryptocurrency market. Thank you, and have a good day.
If you are interested to predict the next CAKE, you can read this article
