On Monday, the Binance coin (BNB) rallied to reach a new all-time high at just over $600. This briefly saw its market cap top $90 billion. The move sees the altcoin solidify its place at third place. The next few days will be crucial for Binance with XRP closing in behind it. XRP is enjoying a winning streak and sits fourth with a market cap of $66 billion.
In the last 3 months, BNB has been one of the best performers in the market. Among the top four, it is the best performer with a +700% price surge. It has by far surpassed Ethereum (ETH). This despite the biggest altcoin being in price discovery. As such, some analysts have been suggesting that Binance could flip Ethereum.
This is a familiar narrative. The most recent coin to enjoy this hype was Cardano, but the token has since slipped to 6th place and out of contention. Since Ethereum took second place, only XRP has ever flipped it. Can Binance do it?
At the time of press, BNB is trading for $564. Looking at the market cap, there is more than $100 billion between it and Ethereum. The aggressive growth from BNB suggests that it could quickly close down this gap. Yet Binance has another massive advantage over Ethereum.
How Binance Is Coming Out Ahead
One of the main reasons why BNB has outperformed Ethereum is because of the growing popularity of the Binance Smart Chain. Transaction volume in the Binance Smart Chain has in recent weeks skyrocketed. In fact, this is now three times more than Ethereum. It has been notable that in Asia, BSC has been the preferred blockchain.
Another notable growth has been the valuation of their Defi ecosystem. In recent months, Binance Defi has been valued higher than Ethereum Defi projects. This has seen Binance become a favourite among investors.
With lower transaction costs and scalability, developers are also choosing the Binance project more than Ethereum. As long as Ethereum struggles, Binance will continue to take advantage.
It is key to note that Ethereum is set for a massive boost with the launch of Ethereum 2.0. The network upgrade will make Ethereum cheaper, fluid and scalable. Developers and investors might be lured back into the network pushing prices back up.
With XRP also in the mix, the next couple of months could see high rotation in the top four positions. BNB has set the tone and a continued of the same, it will reach the moon. However, XRP and Ethereum are more than capable of turning up with a masterclass performance.