Now the possibility that BNB will become the leading cryptocurrency in terms of capitalization is about the same as the one that BNB will outperform ETH three years ago. But this target is about to be reached. So can BNB beat BTC?
The capitalization of bitcoin is 4.5 times greater than the capitalization of Ethereum. BNB is less than 3 times behind ETH and 13 times behind BTC. Exactly 13 times BNB cap was less than ETH cap at the beginning of 2021. If the CEO of Binance CZ can move his cryptocurrency along the growth trajectory, today’s investors will receive a 1300% profit in the end.
However, there is a danger that the BNB is already overheated. The token reached a price of over $630 in the moment. This is 17 times more than it was at the beginning of the year. Paying tribute to the competent financial policy of Binance, experts are still forced to admit that such rapid rise cannot last long. A correction is needed, and possibly even a rollback. Meanwhile, there are signs that early BNB investors are now taking profits. And the further growth of the token is provided by latecomers and novice investors, following the FoMO effect (Fear of missing out).
Only one factor can fundamentally limit the growth of BNB – the fast ETH’s transition to the Proof-of-Stake consensus and the full launch of ETH 2.0. In this case, the Ethereum platform will remain attractive for DeFi projects, which have been the main driver of the cryptocurrency market for almost a year now. However, the Ethereum team is now in a tough spot due to miner protests. ETH miners’ profits are decreasing and will be significantly limited in the new network. After all, the current ETH blockchain will be just one sidechain in ETH 2.0. And even this dubious prospect may not be realized. Nevertheless, ETH is constantly growing, and there is a forecast that by the end of the year the second cryptocurrency will be worth about $3000. This means that in order to exceed ETH in the ranking, BNB will have to be worth over $2200. And this is unlikely, even if another 10 million BNB will be burned.
Binance’s organizational activities is an important factor in BNB’s growth. CZ correctly estimates that the situation in the cryptocurrency market depends on the decisions of regulators. And so he strengthened his team with people who have connections and influence in the field of regulation. Specifically, a former US senator and two former leaders of the Financial Action Task Force on Money Laundering (FATF) have joined Binance.
So can Binance Coin beat bitcoin? In theory, this is possible on the horizon of 4+ years. And at the end of this year, BNB could be worth around $1K and thus provide 2x ROI to its today’s investors. But it is unlikely that by the end of the year BNB will outstrip even ETH, not to mention BTC.