According to an update from Arcane Research, although bitcoin dominated the stock market, Binance Coin (BNB) beat bitcoin by market cap. BNB witnessed a 1344% market gain. In 2021, Binance smart chain ecosystem witnessed impressive growth and even stole a portion of Ethereum’s market share.
The year 2021, helped establish BNB as the third most favored crypto coin in the world by market cap. There were several other coins that got a lot of press coverage. However, BNB was the clear winner.
BNB received some criticism too. Its own validators were of the opinion that BNB could do with some more testing. It was felt that every update seemed to make things worse.
BNB’s Rise
Ethereum lost some of its market share to BNB. In fact, BNB was called a clone of Ethereum. There is some truth to this claim, but BNB was always clear about the direction of the project.
Binance smart chains documentation highlighted that it uses a model called Proof of Staked Authority (PoSA). The Binance chain was designed to provide faster and economical transactions and at the same time address Ethereum’s high gas fees.
Previously, other blockchains too tried to displace Ethereum, but failed. However, BSC seems to be succeeding and is hosting several crypto, DeFi, and blockchain projects.
Even for BNB, scalability remains a problem. Validators have been posting about various shortcomings with the network on GitHub. The negative feedback from the validators raises doubts about Binance’s continued good performance in 2022.
Binance is now the largest exchange with the biggest range of activities and features. BNB, within the Binance ecosystem enriches users and saves them costs. BNB is now a unicorn that during 2021 provided huge returns to its users with a 1344% price rise.
