cointelegraph.com
Binance Coin (BNB), the native cryptocurrency of Binance Chain and top digital asset exchange Binance, is starting to close in on Ether (ETH) in market capitalization.
As of Monday, BNB is valued at $87 billion at the price of just under $600. The valuation of Ether is hovering at around $246 billion, which is 2.8 times larger than that of Binance Coin.
$BNB volume > $BTC volume.
— Joe Grech (@JoeBGrech) April 12, 2021
Congrats @Binance @cz_binance pic.twitter.com/vLkdGBnnIt
The technical momentum of BNB has been so strong that it briefly surpassed the volume of the BTC/USDT pair on Binance.
This trend is significant because Tether (USDT) is the biggest stablecoin in the global market, and the BTC/USDT pair is one of the most liquid trading pairs in crypto.
Why is Binance Coin surging so hard?
Binance Coin has been rising due to the three key reasons: an overall uptick in the popularity of Binance Smart Chain, strong technical momentum and the gap between BSC and Ethereum projects.
Will the capital rotate back into Ethereum?
However, Kelvin Koh, the managing partner at Spartan Group — one of the largest DeFi-focused funds in Asia — said that for now, he expects the capital to rotate back into Ethereum as BSC projects near the valuation of ETH equivalents.
He emphasized that there is a huge valuation gap between BSC and Ethereum projects. This gap could be making BSC projects compelling to the market. He said:
“BSC is having its own DeFi summer....so much alpha to be discovered in BSC ($XVS, $CAKE). If you are wondering why Ethereum DeFi coins are lacklustre, it’s because of the huge valuation gap that still exists between the BSC coins and ETH equivalents. Until this gap closes, money isn’t rotating back to ETH DeFi coins.”