With Binance Coin registering an impressive 1344% increase in price, Arcane Research, a well-known cryptocurrency research firm has declared BNB as the clear winner of 2021.
As per Arcane Research’s ‘The Weekly Update,’ Binance Coin (BNB) has emphatically emerged as the clear winner of 2021. The coin has cemented its place as the third most popular cryptocurrency in the world, based on market capitalisation ($89,612,085,948 at the time of writing) and only has Bitcoin (BTC) and Ethereum (ETH) ahead of it on the leader board.
While the gold standard of the crypto world, Bitcoin (BTC), successfully beat the stock market in 2021, it couldn’t match the price performance of its counterparts – Ethereum (ETH) and Binance Coin. The latter two delivered noteworthy yearly gains to the tune of 1344% and 455% respectively, far ahead of Bitcoin’s 73%.
BNB/USD Daily Chart – Source: TradingView
It’s worth mentioning that BNB started the year at $37, but rallied strongly for most part of 2021, hitting an all-time high of $690.93 on May 10, 2021. Furthermore, the coin traded well above the $250 mark throughout and was prepping for another upward push at $538 on the reporting date.
Ethereum lost some ground to Binance Smart Chain
A lot of credit for BNB’s impressive run this year goes to Ethereum’s inability to effectively tackle its scalability problems. The latter lost its long-held position of the ‘one and only’ undisputed smart contract platform of the blockchain industry. Although critics call Binance Smart Chain (BSC) a centralised Ethereum clone, since it forked from Ethereum’s code, and only uses 21 validators (as against Ethereum’s 11,000+ nodes), the project’s creators have always been upfront about BSC’s course.
In fact, Binance Smart Chain was explicitly created to solve the rising gas fee problem of Ethereum, and to offer cost-effective, scalable and quicker transactions. Many blockchains have taken a shot at Ethereum’s dominance in the past, but none have succeeded like the BSC. Today, Binance Smart Chain is efficiently hosting a large number of Defi, blockchain and crypto projects.
Moreover, with BSC having received a cash injection to the tune of $1bn in mid-October 2021, it’s only going to grow and become a more robust ecosystem for widespread user and developer engagement.
As can be seen, BNB being the native coin of the Binance ecosystem, benefited immensely from BSC’s rise in 2021. However, that wasn’t the only factor. Binance, apart from being the biggest crypto exchange in the world, also offers a wide array of features, activities and things to do, to its users. And all of that is powered by BNB. Hence, it won’t be wrong to state that with these many use cases, Binance Coin’s price growth in 2021 is nothing but well-justified.
