Binance Smart Chain recently flipped Ethereum in activity metrics including the number of transactions per day, unique active addresses. If this continued, consistently, Binance Coin can be the number one altcoin, replacing Ethereum. This has emerged as a possibility since the market capitalization of Binance Coin has increased.
It has increased nearly 20% since the recovery, and Binance Coin’s market capitalization is now less than 12 Billion away from Tether’s based on data from coinmarketcap.com. However, ever since the Binance Smart Chain-based Bogged Finance fell victim to a flash loan attack, the price of BOG has dropped by 98%. This is a factor that may lead to a drop in the market capitalization of Binance Coin in the long run. This is also a factor that may change the bullish narrative of the Binance Coin.
Though the BSC network is processing a higher volume of transactions and unique addresses, it poses as an alternative to ETH for the duration during which network transaction fees are unaffordable for a few. Once the fees become affordable, which is the long-term target following Ethereum’s updates, Binance smart chain projects are likely to be less relevant (following these ETH updates).
Based on the 24-hr trade volume, Binance Coin’s trade volume is $5.9 Billion. The demand across exchanges has increased consistently. However, based on the current price action, Cardano and Binance Coin are neck-and-neck for the fourth place in the cryptocurrency market based on market capitalization. Despite a downward correction in Binance Coin’s price several times since the beginning of 2021, the price has recovered and made a comeback, consistently.
Based on the above chart, Binance Coin’s social volume and price are in a direct relationship and with the drop in social volume, the price has dropped. In the following weeks, it is likely that the price recovers from the slump and the social volume increases. It is a metric worth keeping an eye on. Based on these metrics, it is likely that the Ethereum flip may never happen, not in the foreseeable future.