Binance exchange continues to aggressively expand the company. As a result, its native BNB token is rising steadily faster than the market. The owner of Binance CZ (Changpeng Zhao) is about to challenge Ethereum creator Vitalik Buterin.
Binance launched the new mainnet Binance Smart Chain with the Proof-of-stake consensus. Holders of BNB tokens can now earn income for staking (keeping a certain amount of BNB in an account). But more importantly, DeFi projects can be launched on the platform. This makes Binance a direct competitor to Ethereum. CZ has tried to capitalize on the DeFi boom that started this year. And it’s not going to stop. The new network supports smart contracts. It remains to find developers of decentralized applications (DApps) who’d like to work with Binance Chain. The developers will remain cautious for a while, but it is very likely that they will not resist the pressure of CZ.
Currently, Ethereum remains the absolute leader in promoting DeFi projects, it has a 65% share of the market. Tron and EOS networks are also active in attracting DeFi, they control about 15% each. NEO, Steem, Hive also work with DeFi.
As for staking, Binance is even ahead of Ethereum in this matter, which will switch to Proof-of-Stake with the launch of Ethereum 2.0, either in November this year, or even next year.
Analysts and practitioners (traders) believe that the transition to Proof-of-Stake has a positive effect on network performance and stability and pushes the network’s native token upward. BNB token can grow 1.5-1.6 times now. Analysts estimate that BNB could be worth over $40. Now its price is just over $24. During the week BNB gained almost 10%. When the message about the new mainnet went, its price soared to $25.8. And since the beginning of the year, the token has risen by 78%.
In fact, Binance is trying to get Ethereum’s tools and solutions. Its advantages are higher speed and lower transaction costs. But the Binance network does not appear to be truly decentralized, unlike Ethereum. However, due to the popularity of Ethereum on the network, there have been problems with fees, they have grown by more than 1000% since July. Trading robots began to pump Gas in order to increase the speed of transaction processing. If Binance Smart Chain can offer the DeFi market more attractive terms, then developers will shift to work on this network. In this case, Ethereum will lose and Binance will gain. The real situation will be shown by the BNB rate relative to ETH.