The ultimate guardians and the protectors of the digital currency economy have fallen to the ground and eating the dust. Both, Ethereum and Bitcoin, are currently eating the dust as they failed to bring any commendable gains while the year is expiring. But while the two were feeling the force of gravity, others, such as tokenized crypto, were having phenomenal value gains.
Currently, Binance’s native token BNB or BNC within the tokenized crypto economy is the largest token of them all. It is sometimes even regarded as the competitor of Ethereum as well as Bitcoin. This is particularly because this very token belongs to the world’s biggest crypto trading platform (after Coinbase) known as “Binance”. In terms of daily trade volume, however, Binance is undoubtedly the biggest crypto platform in the world.
The years 2019, 2020, and 2021 were by far the best years for BNB in terms of value gains. In 2021 alone, BNB’s value gains were more than 1300%.
In contrast to this 1300% increase in BNB’s value, Bitcoin’s year-to-date value gains were not more than 65%. BNB’s 1300% value gains versus Ethereum value gains, though Ethereum’s were much higher than Bitcoin but were no way near to BNB’s. The 2021’s year-to-date gains for Ethereum were as high as 408% which are 892% lower than BNB gains.
Glancing at the gains of the three digital assets, the argument becomes stronger that competition is going on between the three. In this competition on one side is Binance’s BNB and on the other side are the two digital market leaders.
In terms of use, however, Ethereum and Bitcoin both have multifarious uses because they are not native tokens of any crypto exchange firm. Instead, the two are purely decentralized currencies in the digital form being traded in a decentralized market. On the other hand, BNB is issued by Binance itself as an ‘altcoin’ and is primarily used for internal transactions.
BNB has a list of its competitors apart from Bitcoin and Ethereum. Amongst altcoins, there are several altcoins whose value gains were even higher than those of BNB’s. Year-to-date gains for Solana were more than 10,000% which is almost 9 times greater than the gains of BNB this year. If a person had invested a thousand dollars into Solana on 1st January 2021, then the person’s investment would be worth US$ 110,133 today. Solana completely outshined every single digital asset in the digital economy.
Even BNB issuing firm Binance accepts its rivalry with Solana and not with Bitcoin and Ethereum.
But the present market conditions show that investors’ interest is not in buying digital assets such as Bitcoin or Ethereum. Instead, their preference has shifted towards altcoins and this is the major reason why the altcoin economy is swelling while the crypto economy is shrinking.