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Will the Launch of Binance Chain Knock Ethereum’s Price Down?

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Ethereum

Ethereum (ETH) came as one of the most revolutionizing projects in the history of cryptocurrencies. It shifted the attention of developers from cryptos to the blockchain, thus bringing the era of smart contracts and dApps. However, despite the fact that Ethereum is a pioneer in this regard, it fails to keep up with the rapid advancement of the crypto sector, and competition is getting not only bigger, but also more advanced.

Ethereum has already faced off numerous ‘Ethereum Killers’ so far, and none of them managed to finish the job. However, with the recent launch of Binance Chain, things might change for the crypto world’s second largest coin. Not only does it have the potential to beat Ethereum as a platform, but its native Binance Coin (BNB) might also beat Ethereum’s ETH, or at least severely damage its price.

Why is Binance Chain a threat to Ethereum?

Ethereum has been around for years now, and during this time, it managed to establish itself quite well in the crypto industry. It is, and will always be second to Bitcoin, but the question is — whether or Bitcoin will be the only coin above it.

As mentioned, ETH managed to survive numerous Ethereum Killers already, so what threat might newly-launched Binance Chain pose? Well, Binance Chain is unlike any other foe Ethereum had had to face so far. It was launched by one of the world’s largest, most popular, and most trusted exchanges. It already has its native coin, which is already extremely popular, useful, and trusted.

Not only that, but the new blockchain appears to be faster, and with much lower fees. These days, numerous developers who have been working on Ethereum have to make a choice — whether to move on to Binance Chain or to remain loyal to Ethereum. Some will likely choose to stay, as Ethereum offers a pretty good deal in terms of liquidity, and its Ethereum 2.0 version might make the network much more scalable.

However, even with all this progress, Ethereum still has to work hard to achieve something that Binance Chain is already offering by default. In fact, Binance Chain will even have its own DEX.

On the other hand, Binance’s CEO, Changpeng Zhao, made a great point when he stated that Binance Chain does not have smart contracts, and it will primarily serve as a trading platform. This is great news for ETH, as smart contracts are this project’s specialty. Simply put, the two projects are going to be focused on entirely different things, and they might not ever clash with one another.

Binance’s goal is to contribute to the creation of a fully decentralized cryptocurrency ecosystem — something that was next to impossible until now due to highly centralized crypto exchanges. Of course, there were DEXes before Binance DEX, but none of them ever enjoyed the popularity and trust of Binance or its 10+ million users. While there are some talks of developers potentially asking for smart contract deployment on Binance DEX, Ethereum is still safe at this time.

Will Binance Coin outperform ETH?

Binance Coin has been around for some time now, but it truly became popular in early 2019. While it provided traders and investors with a significant discount on Binance ever since it was launched, it only gained more exposure with the return of Binance Launchpad. This is a platform that revolutionized token sales and inspired a new model — IEO (Initial Exchange Offering). The importance of BNB is that it is the only coin which can be used for the purchase of new tokens, which caused many to start purchasing it in large quantities in 2019.

As a result, BNB outperformed pretty much every other cryptocurrency, it more than tripled its own price in only a few months, and it decoupled itself from Bitcoin, is the only coin to successfully do it so far.

Of course, it is unlikely that BNB will outperform Ethereum, neither in terms of market cap nor position, at least for a long, long while. However, it is undeniable that BNB has been rising steadily for a while now, and it does have actual use cases which are more than attractive to investors and traders worldwide.

The DEX will allow it to grow even further, and it would not be surprising if the coin spiked in the following days.

Even with all of that working in BNB’s favor, many believe that it will never outperform ETH, simply because Ethereum is truly decentralized. It may be old and outdated, it may be slow, and its development may take time — but it is fully decentralized. This is not something that many would say for Binance DEX, at least not at this time. With all of that in mind, for the foreseeable future, it is unlikely that BNB will seriously damage Ethereum in any way, and even if some developers are leaving for Binance Chain — a massive part of the community will likely remain.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Solana Price Surges Beyond $100, Dethroning Ripple and BNB To Secure Fourth Place

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Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.

SOL Outlook

Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.

The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.

This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…

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Altcoins

Solana Price Skyrockets to 20-Month Peak Amidst Memecoin Frenzy

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Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.

Catalysts Behind SOL’s Rally

Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.

The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.

Cited figures provided by DeFi aggregator DeFiLlama

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Altcoins

Solana Price Breaches $60 Amid a Symphony of Bullish Indicators

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Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.

SOL’s Bullish Cues

Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.

In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.

Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…

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