It’s official, this was Binance Coin’s year. BNB dominated the market in 2021, establishing itself as third-most popular worldwide coin by market capitalization. It’s not an easy feat given the incredible year altcoins experienced. Many coins were able to capture headlines and capital. Binance Coin is the exception.
Source:| Source: The Weekly Update
According to Arcane Research’s The Weekly Update:
“Bitcoin may have beaten the stock market in 2021, but it has been left in the dust by other cryptocurrencies. Binance Coin (BNB), the largest cryptocurrency by market capital, is currently the top performer with a gain of 1344%. The Binance Smart Chain ecosystem has seen massive growth in 2021, taking some market share from Ethereum.”
That’s why they dubbed Binance Coin as “the winner of 2021,” and their point is well taken. However, there’s more to the story. The company Binance got in serious trouble for quite a while. And their own validators blasted the Binance Smart Chain, saying things like, “There doesn’t appear to be any reasonable testing process in place. Every update appears to make things worse.”
Let’s explore the Binance Coin ecosystem’s tumultuous year.
Large Projects Choose To Work On The Binance Smart chain
There’s no denying it. As The Weekly Update says, “Ethereum has lost its indisputable position as the “one and only” smart contract platform.” And Binance has a lot to do with that. The Binance Smart Chain, a controversial project since its inception, has been called a central Ethereum clone. They have a point. However, even though the Binance team did fork Ethereum’s code, they were always upfront with the direction of the project.
In BSC’s documentation, the team shamelessly claims that the “Binance Smart Chain uses a consensus model called Proof of Staked Authority (PoSA). (…) This consensus model can support a short block time and low fees, and it only requires 21 validators to run.” Contrast that with the 11.000 nodes that reportedly support the Ethereum ecosystem.
Also, They succeeded with their planProjects flocked to this place:
“Binance Smart Chain was developed explicitly to solve Ethereum’s rising gas fees and offers faster, scalable, and cheaper transactions. In the past, several alternative blockchains have tried to become ‘Ethereum Killers’ but couldn’t succeed in capturing new project’s interest. However, Binance Smart Chain is hosting numerous blockchain, Defi, and crypto projects.”
Probleme and Connection to the Binance Coin
However, as in Ethereum’s case, success came with scalability problems. An assortment of Validators were sent to GitHub to raise concerns about the state of the network and how running a complete node’s cost has increased tremendously. “There is no code review, patches are simply committed, in most cases even without a proper description of what they do or what problem they try to solve,” the original poster said.
“I’ve rarely seen something handled so unprofessionally,” the OP accused. “I have many full nodes running there and now all of them are unable to sync. Each of these servers costs me $800 per month (previously only $200), then you told me that I need faster bandwidth and disk which means the cost will keep rising,” a commenter claimed.
This has to do with Binance Coin. Everything. As the native currency of the Binance ecosystem, BNB’s success is tied to the success of the whole network. Binance Coin is doing great, but will Binance Coin holders be able to count on it being the same in 2022?
BNB Price Chart for Binance US, 12/29/2021 | Source: BNB/USD on TradingView.com
Binance Coin Won 2021 – Don’t Make a Mistake
Binance coin rose above all the action in a very busy year. In addition to the uprising of validators, Binance also looked after these matters. Flash loan solutions and kept BNB’s price rising throughout the year. CZ called him for NewsBTC encourages other entrepreneurs create their own coinsThe voice of reason was heard:
“Binance is not only the biggest exchange in the world; it also has the most activities, features, things to do. All of this is powered by BNB. Is it possible to have so many coins that support this large of an ecosystem? There are so many uses for coins. Yes, BNB gives its users superpowers in Binance and can help them save money. How many other coins can do something similar?”
Let’s not kid ourselves, the Binance Coin AKA BNB is a unicorn. One-of-a kind project, which did many right and gave back to early believers with a remarkable year. It is rare to see a price increase of 1344% every day. Binance Coin deserves congratulations for your 2021 purchase.
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