The third biggest cryptocurrency has outperformed both Bitcoin and Ether
There’s no doubt about the fact that Bitcoin and Ether are the two biggest cryptocurrencies in the world. However, in terms of performance in 2021, the world’s two biggest cryptos have fared worse than the third biggest – Binance Coin (BNB). The token, issued by Binance, the largest crypto exchange in the world in terms of transaction volume, has gained a whopping 1300% in 2021. In comparison, Bitcoin only saw a 65% increase, while Ether grew by 408%.
Binance Coin’s astounding growth is the result of the adherents gained by Binance Smart Chain (BSC), which is a blockchain platform with smart contract support. In 2021, BSC became one of the most formidable competitors of the Ethereum blockchain, which is the most widely-used blockchain platform in the world.
BNB is regarded as an altcoin, and it wasn’t the only altcoin to register a rampant rise in 2021. For instance, Fantom and Solana, which are altcoins on smart contract-supporting blockchain platforms, also fared well this year. The crypto ecosystem’s expansion along with greater investor interest in digital assets have also contributed to the stellar performance shown in 2021 by altcoins.
While Bitcoin managed to record two all-time highs, once in April and once again in November, its overall growth has been hampered by constant fluctuations in the crypto market. This made investors look for options that are less volatile, which is why altcoins grew in value through 2021. In 2022, altcoins are set to grow even bigger, which makes for good news for the likes of Binance Coin, Fantom, and Solana.