Binance Coin (BNB), the native token of the Binance ecosystem and Binance Smart Chain (BSC) has risen above $300 again recording a new 15-day high of $315. The utility token started rising towards the end of January from just under $50 and rose to a new all-time high of $342, before entering into a consolidation period between $200 – $300 for nearly two weeks.
The surge in BNB price is attributed to the recent rise in popularity of the Binance Smart Chain, where a large section of the defi ecosystem has either integrated BSC or migrated to the Binance’s native chain.
In the wake of the growing popularity of BNB, Binance has launched a yield farming program for BNB promising up to 27.9% APY.
— Binance (@binance) March 9, 2021
Binance Smart Chain has gained a lot of traction in recent months owing to the Ethereum network’s growing gas fee and network connections. The growth of BSC is evident from the defi total value locked on the blockchain has reached $13.8 billion and BSC is currently processing nearly double the volume of the Ethereum blockchain.
— BNB Swap #BSC (@BNBSwap) March 10, 2021
BSC Becomes Choice of Defi Protocols in the Short Term
The rising gas fee issue had made many defi protocols barely usable as doing a simple swap was costing over $10. In the wake of the Ethereum network’s congestion problems, many Ethereum alternatives have gained traction in the market, BSC being the primary choice of most of the traders and Defi protocols. Binance has also worked towards meeting the growing demand and making BSC more user-friendly.
BSC has become the growing choice for ERC-20 transaction settlement and many Defi protocols, making it an apt short-term Ethereum alternative with a normal transaction fee. Ethereum proponents have criticized BSC especially in the wake of recent rug pulls and growing scams along with the recent listing controversy pointing towards the centralized aspect of the blockchain.