Binance Coin (BNB) has risen to a new all-time high of $650 in a record surge of 30%, before retracing to $550 levels. The altcoin has gained nearly 60% in the past week nearly doubling its last month ATH above $300. The recent surge in price is being attributed to the quarterly BNB burn event where Binance burns a portion of the BNB supply.
The massive price rally of BNB above $600 saw the altcoin register a higher daily trading volume than Bitcoin itself. This is quite a feat considering BNB is just a utility token and was trading under $50 just a couple of months ago.
Congrats @Binance @cz_binance 😍 pic.twitter.com/vLkdGBnnIt
— Joe Grech (@JoeBGrech) April 12, 2021
The recent surge in price and popularity of the BNB token is primarily due to the increasing popularity of the Binance Smart Chain (BSC). BSC over the past couple of months has become the leading blockchain for ERC-20 transactions as well as Defi transactions. The rising gas fee of Ethereum since February end made BSC the primary choice of many spot and defi traders, resulting in BSC becoming a more dominant blockchain for trade.
BSC Registers 3X the Volume of Ethereum
BSC is currently processing 3X the volume of the main Ethereum chain resulting in the surging price of the native BNB token. When BSC started attracting more trading volume than Ethereum, many claimed that the change is short-term and traders would eventually switch back to the Ethereum network once the gas fee cools down. However, looking at surging trading volume and rising demand of BNB, BSC could continue to dominate the Ethereum network until EIP-1559 and Eth 2.0 is fully integrated.
BNB is currently placed third just behind Ethereum in the rankings as per market cap and many believe if BSC continues to attract more Defi projects and BNB price continues to surge, it might eventually flip ETH for the second spot. Ethereum’s market cap is $252 billion while BNB’s market cap is currently $94.5 billion, given BNB has nearly doubled its price over the past month and if it continues the same price momentum it has a good chance of flipping ETH.
