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BNB has made history by moving Tether (USDT) stablecoin from the position of third top digital asset by market capitalization.
The altcoin market is getting heated up. Binance native coin BNB is leading the way after rallying astronomically to take the third position by market capitalization. The asset surged earlier today to hit its all-time high at $276.64 according to market data provided by CoinMarketCap.
Notably, BNB shot from trading below $200 yesterday to the new all-time high. As a result, the rise has seen BNB’s market capitalization surge to around $40 billion, with its 24-hour average volume at approximately $11 billion.
BNB and the Binance Smart Chain
The Binance ecosystem has tremendously grown in the past few years to scales that threaten the Ethereum ecosystem. Notably, both blockchain projects offer the same services but the Binance one is more scalable and cheaper for developers.
BNB has made history by deposing Tether (USDT) stablecoin from the third top digital asset by market capitalization. Besides, the BNB/BTC pair has hit its all-time high, meaning BNB has been growing much faster than Bitcoin. Changpeng Zhao turned to Twitter to cover this event.
#BNB not only made ATHs in fiat terms, it just reached ATH again #BTC. From a humble 0.00001 BTC per BNB, we have grown 480x against BTC in the last 3 and half years. Many thanks to our community, team, and @BinanceAngels. 🙏🙏🙏 pic.twitter.com/P5oJrNus6J
— CZ 🔶 Binance (@cz_binance) February 19, 2021
He further highlighted that BNB is going to experience heightened volatility than Bitcoin in the ongoing bull rally. According to Zhao, since BNB has a smaller market capitalization in comparison to Bitcoin, the upscale is going to be much higher. However, he warned that there are more risks in dealing with BNB than in dealing with Bitcoin.
Other than the crazy retail speculation fueling the BNB rally, there are more underlying aspects pushing the asset higher. One of the notable aspects that is driving the Binance coin, BNB, is the high scalability of the Binance smart chain. The Ethereum ecosystem is experiencing heightened challenges particularly with the high fees as the blockchain activity scales higher. Eth 2.0 transition is on track but seems to take longer than developers can withstand. Hereby promoting a huge migration of developers from Ethereum to the Binance chain. Remember Binance smart chain is interoperable with the Ethereum ecosystem and much cheaper to work with.
Another aspect that has significantly pushed the BNB coin to an all-time high is the continued token burn. Currently, there are 154,532,785 units of BNB in market circulation, approximately 91%. The total BNB stands at 170,532,785. The quarterly burn has been reducing the number of Binance coins in circulation, while the demand increases.
Will the Binance smart chain overtake the Ethereum ecosystem? Only time will tell.