According to CoinMarketCap data on the 19th (local time), Binance Coin rose more than 40% before departure from New York, surpassing Tether (USDT) and ranked third in the market cap.
Binance Coin surpassed Polkadot and Cardano the day before and rose to fourth in the market cap, and within a day, Binance Coin became the second-largest altcoin after Ethereum.
Source: Coin Market Cap
In the market, the growth of Binance Smart Chain (BSC) is cited as the background of Binance Coin’s strength.
According to CoinGecko, the two top performers in the cryptocurrency market in the last 7 days are PancakeSwap and Venus, operated by Binance Smart Chain.
Pancake Swap provides services similar to popular decentralized financial (de-fi) protocols such as Uniswap and SussiSwap.
Meanwhile, there is criticism that the rapid growth of Binance Coin, especially Binance Smart Chain, induces the market in the direction of centralization among cryptocurrency users.
Binance Smartchain is owned by Binance, the world’s largest centralized cryptocurrency exchange, so it does not provide a truly decentralized project like Ethereum.
Nevertheless, Binance Smartchain is creating a direct competition with Ethereum while focusing on DeFi.
Recently, as Ethereum’s price has risen and transaction volume has risen sharply and fees have risen, investors seeking efficient transactions and high returns have become more likely to choose Binance Smartchain as an alternative.
In the marketplace, since hundreds of projects have already been built on Binance Smartchain, many developers are starting to consider this platform as an alternative, and the number of users is expected to accelerate in the future.