Ethereum struggles make Binance CEO, Changpeng Zhao, think BNB will soon overtake ETH. In his recent tweet, he made reference to IBM selling their PC business to Lenovo even when a lot of people used IBM-compatible machines. Though this was an indirect speech, the community member decoded the meaning, stating that Binance coin BNB will replace Ethereum coin, ETH, in the nearest future.
Why Will Binance Coin Replace Ethereum Coin?
Binance smart chain is a high-performance low latency blockchain. It grows at a fast rate to improve the Binance chain price performance. In February alone, BNB was up by 530 percent while Ethereum only rose by 27 percent.
Decentralized finance is revolutionalizing the crypto industry, Binance Smart Chain, BSC, and the Ethereum Smart Contract are the two backbones of the Defi ecosystem. From the look of things, the two chains are now competing over who will have super control of the Defi.
Defi growth offers the two networks the opportunity to increase their price performances. As the public shows great interest in the alternative financial solutions powered by the blockchain. The upward surge in the prices of Defi-associated tokens is massive triggering huge growth in the Defi solution. As Defi is growing, the Ethereum network which is where many of these Defi projects are built on is struggling due to the strain of the weight of their success.
Ethereum Dip is BNB Growth
BNB is currently stronger than Ethereum by a very high margin. Ethereum network is strained by high transaction fees and slow network. Project traffic into the Defi ecosystem is getting higher by the day. The more traffic, the more congested it becomes. This congestion leads to high fees and slows down transaction time.
People prefer fast networks and lower fees, this drive creates a preference for BSC to Ethereum network. According to reports, Defi developers are looking beyond Ethereum for blockchain without high transaction fees that can support a high volume of transactions. Since these two are currently the main chains in the Defi ecosystem, BNB will always grow as Ethereum struggles.
Different Between Ethereum Coin And Binance Coin.
BNB and ETH are both crypto coins but are used on different platforms. BNB was formally based on the Ethereum network as an ERC-20 BNB token. It was later swapped with BEP-2 BNB on a 1:1 ratio in November 2020.
ETH is a native currency of the Ethereum platform, you can use this coin like Bitcoin and also as the main coin on the Ethereum network. ETH is next to Bitcoin, is the second-largest coin, and high performing as well.
However, Ethereum is a strong network that has been standing unshaken for years, despite all the storms. BNB taking over ETH may be regarded as a mere prediction since there are no facts that support Ethereum will back down for BNB.