Thursday, 2 February 2023
Trending

Crypto News

3 reasons why Binance Chain (BNB) rallied 66% since the crypto market crashed

3 reasons why Binance Chain (BNB) rallied 66% since the crypto market crashed

BNB, the native token of Binance’s BNB Chain , has bounced 66% from its $183 low in mid-June. The move consolidates its position as the third-ranked cryptocurrency (when stablecoin market caps are removed) and reflects a $50 billion market capitalization. BNB has outperformed the broader altcoin market capitalization after a devastating 73% correction that began in November 2021.

BNB token at FTX (blue) vs. Total market cap ex-BTC (orange). Source: TradingView

The above chart displays how this smart contract blockchain network suffered during the recent market collapse and how similar movements happened across the altcoin market. Now that BNB price has reached $300, let’s take a look at how the asset is positioned compared to July 2021 when it traded for the same price.

Is BNB’s market cap and valuation justified?

Back in July 2021, the altcoin market capitalization stood 21% higher at $740 billion. Bitcoin (BTC) and Ethereum (ETH) had already established themselves as the market leaders, but the dispute for the third position was far from settled, at least in terms of the total value.

Top coins by market cap on July 4, 2021. Source: Coinmarketcap

Despite still being the third largest cryptocurrency, BNB’s market cap was $47 billion, while Cardano (ADA) held a $46 billion valuation. Currently, no altcoin remotely matches its dominance and the gap has widened by more than $30 billion.

Smart contracts form the foundation of all decentralized applications (DApps), including decentralized finance, gaming, marketplaces, social networks and many other use cases. So what other success metrics are there besides the number of active users using addresses as a proxy?

Top DApps active addresses in 30-days, excluding gambling. Source: DappRadar

PancakeSwap, BNB Chain’s decentralized exchange, has 1.98 million active addresses. The number is so massive that aggregating the next 4 competitors is not enough to match it. According to the data, the runner-up to BNB Chain is 1inch Network, which holds 91% fewer users.

For those questioning whether BNB Chain is a one-trick pony, the network holds a couple of games that have 83,000 or more active addresses each and 78,450 that use 1inch Network. Asking whether or not PancakeSwap really holds that many users is a valid question, but the Ethereum network only holds three DApps surpassing 30,000 active addresses, namely Uniswap, OpeanSea and MetaMask Swap.

Smart contract deposits set BNB Chain apart from its competitors

One…

Click Here to Read the Full Original Article at Cointelegraph.com News…