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ByAuthor J.D. SmithPosted on
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Can Binance Coin Flip Ethereum? Analyst Nicholas Merten Examines Epic Rise of Crypto Asset BNB

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Crypto trader and analyst Nicholas Merten is giving Binance Coin (BNB) a close look after its meteoric ascent to an all-time high of $342.

In a new DataDash video, Merten tells his 391,000 YouTube subscribers that BNB’s furious rally from $38 at the start of 2021 is sparking a narrative that the coin and the protocol it fuels, Binance Smart Chain, could take over the decentralized finance (DeFi) space.

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To explore the possibility of BNB flipping Ethereum (ETH), the crypto analyst takes a deep dive into the differences between the two leading smart contract protocols.

“The ironic thing overall is that the Binance Smart Chain is actually extremely similar to Ethereum. They share the similarity in the sense that Binance Smart Chain is basically a direct fork off of the Ethereum blockchain, in the sense of how it functions, how solidity and code can be brought over from the traditional Ethereum applications that exist into the Binance Smart Chain ecosystem. So all that functionality is seamless… 

The big difference here as well is that Binance Smart Chain in this case has a few select validators. Unlike Ethereum that goes through a mining process and has the thousands of nodes across the world in a very decentralized format, Binance is a lot more centralized. That’s not inherently a terrible thing immediately but as more assets grow on the network, just like how you have more assets on a centralized exchange, that can be a cause for concern…

The benefit of being more centralized in the interim and going towards a path of possibly more decentralization, Binance Smart Chain has been able to actually build out a system where gas fees are practically non-existent.”

Merten adds that although Binance Smart Chain has the advantages that come with its reputation, network effect, and low fees, he still believes that Ethereum is not out of the race.

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“The one critical thing here that is going to determine Ethereum’s dominance on the market when it comes to DeFi or decentralized finance is an implementation of layer-two scaling. We haven’t seen this yet in the sense of some of the major protocols like Uniswap but supposedly it may be in the works as they’ve been continuing to announce that they’re working with scaling solutions like Optimism. That is going to be the game-changer.”

The crypto trader highlights that news of scaling solutions being implemented on decentralized exchanges like Uniswap v3 will likely cement Ethereum’s place as the leader in the DeFi space.

Looking at Binance Coin, Merten notes that while the crypto asset looks exhausted in the short term, he doesn’t see any problem having some exposure to BNB if a trader believes that there’s at least a 10% chance that Binance Smart Chain will eventually dominate DeFi.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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India’s largest crypto exchange adopts decentralized Unstoppable Domains

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Unstoppable Domains turns crypto addresses into decentralized websites on the Ethereum and Zilliqa blockchains. Instead of sending coins to a 42-character blockchain address, Unstoppable Domains allows users to create simple URLs ending in “.crypto” and “.zil” extensions. Domain names need only be purchased once, and then exist forever on the blockchain without requiring any renewal or maintenance fees.

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The network is currently on-pace to settle $1.6 trillion in transactions for the first quarter of this year. In the last 12 months, Ethereum has already settled $2.1 trillion in transactions.

If Messari’s $1.6 trillion forecast is accurate, Ethereum’s quarterly settlement value will have increased 1,280% compared to Q1 2020, and more than 5,000% compared to Q1 2019. 

Messari researcher Ryan Watkins noted the data counters the prevailing narrative that Ethereum is seeing an exodus of users amid its high gas fees, exclaiming:

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Bitcoin whale from 2010 moves 100 BTC for first time in 11 years

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The Feb. 25 transaction combined the two mining address outputs, indicating both addresses belong to the same owner. The two blocks were mined only a couple of hours apart on Jun. 10, 2010.

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While the majority of altcoins have entered a consolidation phase that includes a retest of underlying support levels, several projects have started to regain lost ground after new developments reignited investors’ optimism.

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