Binance Coin (BNB), the native utility token of the Binance ecosystem is on a dream bull run as the token price attained a new ATH of $194 after surging nearly 44% over the past 24 hour. BNB’s phenomenal price rise also helped it make it to the top 5 cryptocurrency by market cap list for the first time.
The massive rise of the BNB is being attributed to the rising popularity of its native blockchain called Binance Smart Chain that has become the growing choice of ERC-20 users because of the rising gas fee on the Ethereum network.
The Binance Smart Chain offers ERC-20 transactions at a much cheaper price than the Ethereum network and BNB being the native token as result saw a great demand in this period. The soaring demand for the token is evident from record BNB volumes worth hundreds of millions of dollars.
Binance Coin Rise Over 400% in 2 Weeks
Binance Coin was trading just above $46 mark at the start of Febraury having never touched the three figure price. The price rise over the past two weeks has diminished even Bitcoin and Ethereum that has attained new all-time-highs this week. Many Binance fan also attribute the price rise to the quarterly tokern program, however at this point the rising popularity of the native chain seem to be the prominent driving factor. The CEO of Binance believe that the native chain has passed the tipping point of user acceptance and usage.
— CZ ???? Binance (@cz_binance) February 18, 2021
The growing popularity of Binance Smart Chain owing to high gas fee on Ethereum network has also initiated the debate over scalability issues with decentralized system something that has haunted Ethereum for quite some time now and one of the prominent reasons behind the move to Proof of Stake based ETH 2.0. Many point towards Binance’s alleged centralized chain functioning better in processing ERC-20 transactions at a much lower fee.