As BNB Price Grows, Will the Binance Smart Chain Overtake Ethereum?
- Will the Binance Smart Chain give Ethereum a run for its money?

As BNB continues to gain popularity, it seems that a growing number of analysts are pointing to the Binance Smart Chain (BSC) as a serious threat to the Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, called Turing Complete, which is used to build the dapps. Dapps run on a peer-to-peer (P2P0 network of virtual machines. These can be just about anything and are optimized to run on Smart Contracts. Smart Contracts are pieces of code that execute a predetermined set of actions once a certain set of criteria are met. The Ethereum network’s native currency is called Ether, or ETH. ETH tokens can be used to pay for things inside of dapps or to receive payouts from smart contracts. They can also be traded off of the Ethereum network inside of cryptocurrency exchanges or OTC trading platforms. For most of its lifetime, Ethereum has remained as the second-largest and most popular cryptocurrency in terms of its market cap. It was briefly outpaced by Bitcoin Cash near the end of 2017.Ethereum’s origin dates back to late 2013 when crypto researcher and programmer Vitalik Buterin proposed its utility.Its development was subsequently funded by an online crowdsale that took place in the middle of 2014 before going live in July 2015. At its inception, Ethereum went live with 72 million coins minted, accounting for approximately 65 percent of its total circulating supply as of May 2020.Like other cryptos, Ethereum has had a checkered past, resulting in splits. Back in 2016, an exploited vulnerability in The DAO project's smart contract software caused the theft of $50 million worth of ether.As a result, Ethereum was split into two separate blockchains – a newer and separate version became known as Ethereum (ETH), while the original chain continued to be known as Ethereum Classic (ETC). Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, called Turing Complete, which is used to build the dapps. Dapps run on a peer-to-peer (P2P0 network of virtual machines. These can be just about anything and are optimized to run on Smart Contracts. Smart Contracts are pieces of code that execute a predetermined set of actions once a certain set of criteria are met. The Ethereum network’s native currency is called Ether, or ETH. ETH tokens can be used to pay for things inside of dapps or to receive payouts from smart contracts. They can also be traded off of the Ethereum network inside of cryptocurrency exchanges or OTC trading platforms. For most of its lifetime, Ethereum has remained as the second-largest and most popular cryptocurrency in terms of its market cap. It was briefly outpaced by Bitcoin Cash near the end of 2017.Ethereum’s origin dates back to late 2013 when crypto researcher and programmer Vitalik Buterin proposed its utility.Its development was subsequently funded by an online crowdsale that took place in the middle of 2014 before going live in July 2015. At its inception, Ethereum went live with 72 million coins minted, accounting for approximately 65 percent of its total circulating supply as of May 2020.Like other cryptos, Ethereum has had a checkered past, resulting in splits. Back in 2016, an exploited vulnerability in The DAO project's smart contract software caused the theft of $50 million worth of ether.As a result, Ethereum was split into two separate blockchains – a newer and separate version became known as Ethereum (ETH), while the original chain continued to be known as Ethereum Classic (ETC). Read this Term network. Citing faster and cheaper transactions, these analysts believe that the BSC could overtake Ethereum as the 'backbone' of the decentralized finance (DeFi) ecosystem.
This increase in user activity has been reflected in the price of the Binance token (BNB), which has continued to rally as the Binance Smart Chain continues to rise in popularity. BSC, which was launched in September of 2020, acts in parallel to the Binance Chain. BSC allows for smart-contract functionality and provides a staking mechanism for BNB tokens.
According to data from CoinMarketcap, BNB surpassed Polkadot to become the third-largest cryptocurrency by market cap on Friday. BNB went on to hit a new all-time high on Saturday, with a price above $342. At press time, BNB was holding strong at $271.

”If You Want More Users for Your Dapp, You Need to Be on #BSC Now.”
As the BSC ecosystem continues to grow (and the price of BNB along with it), BSC has become the chain of choice for a growing number of DeFi protocols.
Indeed, a handful of projects have left Etheruem in favor of BSC, including Value DeFi and yield aggregator, Harvest Finance. Binance Chief Executive, Changpeng Zhao has encouraged projects to migrate to BSC since the chain was launched in the fall. However, as BNB has continued to grow over the past week, he has taken to Twitter with renewed enthusiasm.
On Saturday, February 20th, Zhao commented that: “there are almost 2x more transactions on #BSC than on ETH. If you want more users for your Dapp, you need to be on #BSC now.”
There are almost 2x more transactions on #BSC than on ETH.
— CZ 🔶 Binance (@cz_binance) February 18, 2021
If you want more users for your Dapp, you need to be on #BSC now. pic.twitter.com/ZYnbFOVysc
“#BNB started as a token on #ETH, but maybe #ETH will end up as a token on #BSC,” he wrote on Monday, February 22nd.
#BNB started as a token on #ETH, but maybe #ETH will end up as a token on #BSC.
— CZ 🔶 Binance (@cz_binance) February 22, 2021
Restricting comments due to the provocative joke. 😂 https://t.co/jmIr3Xbi6p
”Have an Infinite Mindset.”
However, he encouraged Ethereum and BSC community members to get along with one another. “For those holding ETH, no need to attack #BSC. We together make the industry bigger. ETH price did not drop. It increases together with #BNB. Have an infinite mindset.”
A number of other platforms that were already hosted on the BSC platform have seen positive movement as a result of the growth of the BSC. For example, Venus, which Cointelegraph describes as “an algorithmic money market and synthetic Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including gold, silver, or others. Advantages of StablecoinsOf note, stablecoins redeemable in currency, commodities, or fiat money are also said to be backed, whereas those tied to an algorithm are not considered to be so.There are several advantages of asset backed crypto. First, these coins are stabilized by assets that fluctuate outside of the crypto space, that is. This can help mitigate the financial risk associated with these assets.For example, Bitcoin and altcoins are highly correlated, so that cryptocurrency holders cannot escape periodic price falls. Stablecoins control for this vulnerability, allowing for the diversification of risk in a portfolio.Stablecoins also possess a mechanism for redeeming the asset backing them. This grants an additional level of confidence associated with the coin and are unlikely to drop below the value of the underlying physical asset, due to the effects such as arbitrage.For example, fiat-pegged coins are coins that are tied to a specified amount of fiat currency, usually on a one-to-one ratio (i.e.1 StablecoinX = $1). The companies that issue these currencies must have fiat reserves in the equivalent amount of the stablecoins they have issued.Crypto-pegged stablecoins constitute coins that are tied to a specified amount of another cryptocurrency, such as Bitcoin or Ethereum. Algorithmic stablecoins use supply-and-demand to automatically maintain a stable value. Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including gold, silver, or others. Advantages of StablecoinsOf note, stablecoins redeemable in currency, commodities, or fiat money are also said to be backed, whereas those tied to an algorithm are not considered to be so.There are several advantages of asset backed crypto. First, these coins are stabilized by assets that fluctuate outside of the crypto space, that is. This can help mitigate the financial risk associated with these assets.For example, Bitcoin and altcoins are highly correlated, so that cryptocurrency holders cannot escape periodic price falls. Stablecoins control for this vulnerability, allowing for the diversification of risk in a portfolio.Stablecoins also possess a mechanism for redeeming the asset backing them. This grants an additional level of confidence associated with the coin and are unlikely to drop below the value of the underlying physical asset, due to the effects such as arbitrage.For example, fiat-pegged coins are coins that are tied to a specified amount of fiat currency, usually on a one-to-one ratio (i.e.1 StablecoinX = $1). The companies that issue these currencies must have fiat reserves in the equivalent amount of the stablecoins they have issued.Crypto-pegged stablecoins constitute coins that are tied to a specified amount of another cryptocurrency, such as Bitcoin or Ethereum. Algorithmic stablecoins use supply-and-demand to automatically maintain a stable value. Read this Term protocol designed specifically for BSC,” has grown significantly along with the BSC. The Venus token (XVS) has grown more than 2900% since its October launch, sitting at $75.37 at press time.
Moreover, PancakeSwap (CAKE), another BSC-based DeFi project, has seen massive growth since its inception on the Binance Smart Chain last autumn. CAKE was trading at roughly $1.40 when it launched in late September; today, that figure is up to $15.23. Furthermore, PancakeSwap is listed as the third-largest automated market maker in the DeFi space, following behind Uniswap and Sushiswap.

”DeFi Protocols Are Increasingly Chain-Agnostic.”
Why is BSC proving to be such a strong contender for an Ethereum replacement of sorts? A number of analysts say that it all comes down to cost and speed. As Ethereum has seen fees increase and transaction speed slow down with the growth of traffic on the network, DeFi developers have begun to look elsewhere.
A software update known as Eth2.0 is already underway to address the scalability issues on the Ethereum network. However, with a launch date that is months (or even years) in the future, some analysts believe that Eth2.0 may be too little, too late.
A spokesperson for Binance told Cointelegraph that: “feedback we have heard is the DeFi protocols are increasingly chain-agnostic. The rapid growth of BSC shows the users prefer lower transaction fees. BSC also provides a variety of assets, many of which are not available on DeFi protocols on Ethereum.”
As BNB continues to gain popularity, it seems that a growing number of analysts are pointing to the Binance Smart Chain (BSC) as a serious threat to the Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, called Turing Complete, which is used to build the dapps. Dapps run on a peer-to-peer (P2P0 network of virtual machines. These can be just about anything and are optimized to run on Smart Contracts. Smart Contracts are pieces of code that execute a predetermined set of actions once a certain set of criteria are met. The Ethereum network’s native currency is called Ether, or ETH. ETH tokens can be used to pay for things inside of dapps or to receive payouts from smart contracts. They can also be traded off of the Ethereum network inside of cryptocurrency exchanges or OTC trading platforms. For most of its lifetime, Ethereum has remained as the second-largest and most popular cryptocurrency in terms of its market cap. It was briefly outpaced by Bitcoin Cash near the end of 2017.Ethereum’s origin dates back to late 2013 when crypto researcher and programmer Vitalik Buterin proposed its utility.Its development was subsequently funded by an online crowdsale that took place in the middle of 2014 before going live in July 2015. At its inception, Ethereum went live with 72 million coins minted, accounting for approximately 65 percent of its total circulating supply as of May 2020.Like other cryptos, Ethereum has had a checkered past, resulting in splits. Back in 2016, an exploited vulnerability in The DAO project's smart contract software caused the theft of $50 million worth of ether.As a result, Ethereum was split into two separate blockchains – a newer and separate version became known as Ethereum (ETH), while the original chain continued to be known as Ethereum Classic (ETC). Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, called Turing Complete, which is used to build the dapps. Dapps run on a peer-to-peer (P2P0 network of virtual machines. These can be just about anything and are optimized to run on Smart Contracts. Smart Contracts are pieces of code that execute a predetermined set of actions once a certain set of criteria are met. The Ethereum network’s native currency is called Ether, or ETH. ETH tokens can be used to pay for things inside of dapps or to receive payouts from smart contracts. They can also be traded off of the Ethereum network inside of cryptocurrency exchanges or OTC trading platforms. For most of its lifetime, Ethereum has remained as the second-largest and most popular cryptocurrency in terms of its market cap. It was briefly outpaced by Bitcoin Cash near the end of 2017.Ethereum’s origin dates back to late 2013 when crypto researcher and programmer Vitalik Buterin proposed its utility.Its development was subsequently funded by an online crowdsale that took place in the middle of 2014 before going live in July 2015. At its inception, Ethereum went live with 72 million coins minted, accounting for approximately 65 percent of its total circulating supply as of May 2020.Like other cryptos, Ethereum has had a checkered past, resulting in splits. Back in 2016, an exploited vulnerability in The DAO project's smart contract software caused the theft of $50 million worth of ether.As a result, Ethereum was split into two separate blockchains – a newer and separate version became known as Ethereum (ETH), while the original chain continued to be known as Ethereum Classic (ETC). Read this Term network. Citing faster and cheaper transactions, these analysts believe that the BSC could overtake Ethereum as the 'backbone' of the decentralized finance (DeFi) ecosystem.
This increase in user activity has been reflected in the price of the Binance token (BNB), which has continued to rally as the Binance Smart Chain continues to rise in popularity. BSC, which was launched in September of 2020, acts in parallel to the Binance Chain. BSC allows for smart-contract functionality and provides a staking mechanism for BNB tokens.
According to data from CoinMarketcap, BNB surpassed Polkadot to become the third-largest cryptocurrency by market cap on Friday. BNB went on to hit a new all-time high on Saturday, with a price above $342. At press time, BNB was holding strong at $271.

”If You Want More Users for Your Dapp, You Need to Be on #BSC Now.”
As the BSC ecosystem continues to grow (and the price of BNB along with it), BSC has become the chain of choice for a growing number of DeFi protocols.
Indeed, a handful of projects have left Etheruem in favor of BSC, including Value DeFi and yield aggregator, Harvest Finance. Binance Chief Executive, Changpeng Zhao has encouraged projects to migrate to BSC since the chain was launched in the fall. However, as BNB has continued to grow over the past week, he has taken to Twitter with renewed enthusiasm.
On Saturday, February 20th, Zhao commented that: “there are almost 2x more transactions on #BSC than on ETH. If you want more users for your Dapp, you need to be on #BSC now.”
There are almost 2x more transactions on #BSC than on ETH.
— CZ 🔶 Binance (@cz_binance) February 18, 2021
If you want more users for your Dapp, you need to be on #BSC now. pic.twitter.com/ZYnbFOVysc
“#BNB started as a token on #ETH, but maybe #ETH will end up as a token on #BSC,” he wrote on Monday, February 22nd.
#BNB started as a token on #ETH, but maybe #ETH will end up as a token on #BSC.
— CZ 🔶 Binance (@cz_binance) February 22, 2021
Restricting comments due to the provocative joke. 😂 https://t.co/jmIr3Xbi6p
”Have an Infinite Mindset.”
However, he encouraged Ethereum and BSC community members to get along with one another. “For those holding ETH, no need to attack #BSC. We together make the industry bigger. ETH price did not drop. It increases together with #BNB. Have an infinite mindset.”
A number of other platforms that were already hosted on the BSC platform have seen positive movement as a result of the growth of the BSC. For example, Venus, which Cointelegraph describes as “an algorithmic money market and synthetic Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including gold, silver, or others. Advantages of StablecoinsOf note, stablecoins redeemable in currency, commodities, or fiat money are also said to be backed, whereas those tied to an algorithm are not considered to be so.There are several advantages of asset backed crypto. First, these coins are stabilized by assets that fluctuate outside of the crypto space, that is. This can help mitigate the financial risk associated with these assets.For example, Bitcoin and altcoins are highly correlated, so that cryptocurrency holders cannot escape periodic price falls. Stablecoins control for this vulnerability, allowing for the diversification of risk in a portfolio.Stablecoins also possess a mechanism for redeeming the asset backing them. This grants an additional level of confidence associated with the coin and are unlikely to drop below the value of the underlying physical asset, due to the effects such as arbitrage.For example, fiat-pegged coins are coins that are tied to a specified amount of fiat currency, usually on a one-to-one ratio (i.e.1 StablecoinX = $1). The companies that issue these currencies must have fiat reserves in the equivalent amount of the stablecoins they have issued.Crypto-pegged stablecoins constitute coins that are tied to a specified amount of another cryptocurrency, such as Bitcoin or Ethereum. Algorithmic stablecoins use supply-and-demand to automatically maintain a stable value. Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including gold, silver, or others. Advantages of StablecoinsOf note, stablecoins redeemable in currency, commodities, or fiat money are also said to be backed, whereas those tied to an algorithm are not considered to be so.There are several advantages of asset backed crypto. First, these coins are stabilized by assets that fluctuate outside of the crypto space, that is. This can help mitigate the financial risk associated with these assets.For example, Bitcoin and altcoins are highly correlated, so that cryptocurrency holders cannot escape periodic price falls. Stablecoins control for this vulnerability, allowing for the diversification of risk in a portfolio.Stablecoins also possess a mechanism for redeeming the asset backing them. This grants an additional level of confidence associated with the coin and are unlikely to drop below the value of the underlying physical asset, due to the effects such as arbitrage.For example, fiat-pegged coins are coins that are tied to a specified amount of fiat currency, usually on a one-to-one ratio (i.e.1 StablecoinX = $1). The companies that issue these currencies must have fiat reserves in the equivalent amount of the stablecoins they have issued.Crypto-pegged stablecoins constitute coins that are tied to a specified amount of another cryptocurrency, such as Bitcoin or Ethereum. Algorithmic stablecoins use supply-and-demand to automatically maintain a stable value. Read this Term protocol designed specifically for BSC,” has grown significantly along with the BSC. The Venus token (XVS) has grown more than 2900% since its October launch, sitting at $75.37 at press time.
Moreover, PancakeSwap (CAKE), another BSC-based DeFi project, has seen massive growth since its inception on the Binance Smart Chain last autumn. CAKE was trading at roughly $1.40 when it launched in late September; today, that figure is up to $15.23. Furthermore, PancakeSwap is listed as the third-largest automated market maker in the DeFi space, following behind Uniswap and Sushiswap.

”DeFi Protocols Are Increasingly Chain-Agnostic.”
Why is BSC proving to be such a strong contender for an Ethereum replacement of sorts? A number of analysts say that it all comes down to cost and speed. As Ethereum has seen fees increase and transaction speed slow down with the growth of traffic on the network, DeFi developers have begun to look elsewhere.
A software update known as Eth2.0 is already underway to address the scalability issues on the Ethereum network. However, with a launch date that is months (or even years) in the future, some analysts believe that Eth2.0 may be too little, too late.
A spokesperson for Binance told Cointelegraph that: “feedback we have heard is the DeFi protocols are increasingly chain-agnostic. The rapid growth of BSC shows the users prefer lower transaction fees. BSC also provides a variety of assets, many of which are not available on DeFi protocols on Ethereum.”