Looks like Binance Coin (BNB) is all set to eat into the market share of Ethereum (ETH)! Binance coin (BNB), the native cryptocurrency of the Binance Smart Chain has entered an indomitable price rally over the last few days. Today, the BNB price surge another 50% flipping Tether (USDT) as the third-largest cryptocurrency by market cap.
The Binance Coin (BNB) Price has shot another 50% today hitting its all-time high above $250 with its market cap now at over $40 billion. However, let’s take a look into what’s driving the mania behind the solid bull run of Binance Coin (BNB).
As we know that with the DeFi craze at its peak, the demand for decentralized exchanges (DExs) like UniSwap has been going high. However, as the Ethereum blockchain continues to dominate the DeFi space, it is unable to cater to the mad rush in DeFi. The result is ETH gas fee has shot to the roof over the last few weeks.
Since the beginning of February 2021, the ETH average transaction fee has continuously stayed above $20, as per BitInfo Charts. While it has been an ideal scenario for the ETH miners who have been minting huge money, it is definitely putting some big weight on the wallets of DeFi investors.
Interestingly, investors are now looking for alternatives to other Ethereum competitors. Thus, Ethereum’s loss has ultimately translated to some huge gains for the Binance Smart Chain (BSC).
PancakeSwap Overtakes UniSwap As The Biggest DEX By Trading Volume
Well, some popular Ethereum-based DEXs like UniSwap are facing the brunt of the rising gas fee. The result is BSC-based DEXs like PancakeSwap has overtaken UnisSwap in terms of the daily trading volume.
There is one flippening left. pic.twitter.com/4DwLlAtkyf
— PancakeSwap ???? #BSC (@PancakeSwap) February 19, 2021
Well, this is an interesting development just at a time when Ethereum looked indomitable in the DeFi space. Well, the early signs are clear that if Ethereum 2.0 development doesn’t pick up the pace, it could possibly lose its stronghold in the DeFi space.
No doubt, Ethereum (ETH) still holds a lion’s share of the DeFi market and will continue to do so for a while.