Why is Ethereum ahead of Binance Coin in the alt-season?

While both are strong cryptos, the hype around Eth 2.0 gives ETH an edge      

It’s no secret that Ethereum has been on a tear lately, outperforming almost every other cryptocurrency on the market. Binance Coin, on the other hand, has lagged. So, what’s driving Ethereum’s success? Here are a few key factors.

  • Binance Coin powers Binance and has a lot of uses, making it valuable crypto.
  • Ethereum is the number one smart contracts platform in the market and is not going away soon.
  • Ethereum has a lot of hype due to the transition to Ethereum 2.0.

Binance’s cryptocurrency BNB/USD is the currency that drives the whole Binance ecosystem. Whoever utilizes Binance exchange or any of its associated services.

Like the Binance Smart Chain, must have utilized the BNB at one particular time without realizing it.

The Coin is also Binance’s native token and it was Binance’s first project. Binance platform has a lot of utility which in turn makes Binance Coin one of the most valuable cryptocurrencies in the market.

Ethereum, on the other hand, is the topmost smart contracts platform. It is the most widely used platform for launching dapps and tokens.

ETH is also ahead of Binance Coin in terms of development. Ethereum 2.0 is a major upgrade to the platform that will make it faster, scalable, and more efficient.

There’s no doubt that the value of the Binance Coin will increase in the future. Considering that it is extremely innovative and constantly creates new products that need BNB.

The most essential element in the Binance Chain’s value increase is the burn.

Binance has been burning BNB since its inception, and this has helped to increase the value of the coin. As the burn process continues, it will have a positive impact on BNB’s price.

On the other hand, Ethereum is presently the most popular platform for smart contracts. This is because Ethereum has been significantly developed as investors embrace it for everything from NFTs to DeFi.

Ethereum is working towards a shift away from Proof-of-Work to Proof-of-Stake over the last two years. The aim is to resolve Ethereum’s scalability problems, which have plagued it for years and make the system more energy-efficient.

Why Ethereum has an advantage in the short term

However, while both Ethereum and Binance Coin are excellent long-term investments. Ethereum has an advantage over BNB owing to the resurgence of bulls in the market. Because Ethereum is on the verge of making a major transition to Eth 2.0 gives ETH an edge

Ethereum 2.0 will be more scalable, attracting usage. It’s also a deflationary system, which is beneficial to its long-term value appreciation. Demand and supply are the key factors in play here – basic economics.

Binance Coin, on the other hand, is still running on Binance Chain, which is not as decentralized as Ethereum. Binance Chain also doesn’t have a native token as Ethereum does.

This makes it less attractive to developers and hampers BNB’s long-term appreciation potential.

Summary

Both Binance Coin and Ethereum have a lot of long-term potentials. They’re both well regarded as some of the most fundamentally strong cryptocurrencies available. In the short term, though, Ethereum has an advantage.

There is a lot to talk about with regards to the final transition to Eth 2.0, which could attract substantial trading volumes.

BNB, on the other hand, is struggling to find a use case outside of Binance. This limits its potential in the short term. In the long term, Binance Coin could catch up to Ethereum if Binance Chain becomes more popular with developers.

What do you think about Binance Coin and Ethereum? Let us know in the comments!

Learn where to buy Binance Coin here.