In the past few weeks, I have been monitoring events around the Binance Smart Chain (BSC) and the Binance Coin (BNB). To be frank, a lot is really taking place on the BSC, a fine alternative to developers as well as users who are finding Ethereum less desirable due to the skyrocketing transaction fees. Just as ETH is known as the token powering the Ethereum blockchain, BNB is the token powering the Binance Smart Chain. Therefore, BNB is technically emerging as the first real rival token of Ethereum.
Prior to this very moment, a number of blockchain projects such as EOS, Tron, Steem, etc have prided themselves as the Ethereum-killer but none has really developed products that could give Ethereum a run for its money. For the first time, we find a blockchain in the BSC that is actually luring rational people over. Its native token, BNB, is growing very strong and cannot be overlooked by any serious-minded investor. In this article, I share with you four reasons why the BNB could probably be the next Ethereum.
1. BNB As the Native Token of the Binance Smart Chain (BSC)
On the Ethereum blockchain, users pay transaction cost with Ethereum. This naturally creates very high demand for Ethereum, depending on the number of users and activities on the network. On the BSC, however, BNB is used for transactions. Of course, that also creates a huge demand for BNB. And as we see people gradually migrating from Ethereum to BSC, the value of BNB is sure to rise, rise significantly.
2. Periodic Token Burning Events
The Binance Team periodically burns the BNB token depending on the amount of money made in BNB from transaction fees across the Binance ecosystem. A few weeks ago, before the recent surge in the price of BNB, Binance conducted an event which led to the burning of millions of BNB tokens. Historically, these events have witnessed a correlative growth in the price of BNB as witnessed in the past weeks. Here the BNB has some advantage over Ethereum because the latter does not conduct such events.
3. The Binance Factor
As you probably know, Binance is the largest CEX in the world, a status which makes it quite formidable when it comes to cryptolitics, that is, the politics surrounding the listing and delisting of coins as well as market trends. Interestingly, the BNB is also the token powering Binance where millions of crypto transactions occur each day. This clearly creates a demand for BNB from those who want lower trading fees, making a case for more growth in the BNB price.
4. The Binance Launch Pool
This is a platform on the Binance ecosystem where what seem like an ICO can take place for new projects that are kicking off. Usually, BNB is staked before participants are allowed to be part of the token offering, which is then listed on Binance. SPF and BEL are two tokens which entered the market by leveraging on the Binance launch pool.
Usually, the Binance launch pool creates massive demand for BNB, a thing that could always have very positive impact on the price of the crypto asset, clearly giving it a hedge over Ethereum.
Conclusion
As you can see for yourself, quite a lot of innovation is being built around BNB, preparing it to be one of the most utility-driven token in the crypto market. The point of this article, however, is not that BNB will replace ETH. Rather, this article argues that the BNB is a perfect token for those who feel that ETH has become too expensive. BNB has all it takes to reach over $1k per coin in the months ahead if this pace of development around it continues.