BNB Hits $400 All-Time High, Reducing Market Cap Distance from Ethereum
- 6th April 2021
- Posted by: Hakeem
- Category: Crypto
Binance Coin (BNB), the native coin of Binance exchange and Binance Smart Chain, has soared to rise above the $400 level for the first time in the coin’s history.
Now, BNB’s market cap is only four times less than Ethereum’s, CZ has tweeted.
BNB soars above $400, here’s how it started
Having emerged in the Binance ICO in November 2017, BNB has come a long way, having turned into the third-largest digital currency by market capitalization.
It started trading slightly over $1, then it began rising after its utility spread to Binance Launchpad, and Binance inked partnerships with other companies to ensure BNB’s utility.
Many Binance employees also choose to receive part of their salaries in BNB. Then Binance Smart Chain was launched in 2020, and it is compatible with Ethereum, open to DeFi.
Even though CEO CZ states that all blockchain companies are on the same page and in the same boat, striving to change the world and the way people use money and do business, CZ still demonstrates that Binance Smart Chain is competing with the second-largest blockchain: Ethereum.
Binance Smart Chain vs. Ethereum
According to journalist Colin Wu, CZ has tweeted that, on April 5, the amount of active wallets in a single day on the Binance Smart Chain hit a 370,000 record.
That is 1.1 times more than on Ethereum. The 24-hour on-chain volume of BSC exceeds that of Ethereum by 3.9 million, or 300 percent.
The other sphere in which Binance Smart Chain starts competing with Ethereum is transaction fees. They are much lower on the BSC than on ETH, which attracts many DeFi app makers.
CZ has also tweeted that now BNB’s market cap is only 4x behind that of the second-largest crypto, ETH.
On March 21, it was 5x behind ETH.