Binance Coin (BNB) Bull Run: Analyst Makes Bold Case for $500

Binance Coin (BNB) Bull Run: Analyst Makes Bold Case for $500

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In comparison, Binance Smart Chain (BSC), a centralized blockchain protocol with smart contract functionalities, can handle more transactions at a lesser fee.

“BSC is not an ETH killer,” the 44-year old business executive tweeted. “It is built with learnings from ETH and tries to help solve one key issue, high fees. It wasn’t designed that way, or at least, it wasn’t presented to me as such.”

Mr. Zhao’s sugar-coated warnings to Ethereum later got picked by an independent analyst. The pseudonymous entity provided five reasons why the Binance ecosystem’s native token BNB would surge to $500, almost twice its value from now, as traders choose it over Ethereum’s ETH cryptocurrency.

The Bullish Catalysts

BNB serves a de-facto currency on all the Binance platforms, including a cryptocurrency exchange, a crowdfunding platform for emerging blockchain projects, interest-yielding pools, and two separate blockchains (BSC one among them).

Traders use BNB to pay discounted fees for the said Binance services. Meanwhile, projects that want to list their tokens on the Binance exchange can also pay the firm via BNB.

Overall, growth for the Binance ecosystem loosely translates into more adoption for its native cryptocurrency, BNB. Meanwhile, the company used to burn 20 percent of its BNB revenue every quarter, ensuring scarcity against rising demand.

However, in March 2019, Binance changed their whitepaper so that the BNB in the treasury would be burned based on “volumes”.  Their treasury has 32 million and 16.5 million BNB frozen and circulating.

To many, BSC is a BNB demand booster because it directly challenges Ethereum’s status-quo.

The prospect has seen the BNB/USD exchange rate rise from $36.96 at the beginning of this year to as high as $348.69 on February 19. The pair reaped benefits from newfound attention in BSC as the Ethereum network experienced network clogging and higher gas fee issues.

Binance, Binance Coin, Binance Smart Chain, BNBUSD, BNBBTC, BNBUSDT, BNB
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