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Popular analyst and trader Nicholas Merten is unveiling the key reason that’s powering Binance Coin’s current parabolic ascent en route to becoming the third-largest crypto asset.
In a new video, Merten tells his 428,000 subscribers that the recent delay in the deployment of Optimism, an update for Ethereum to make it faster and more cost-efficient, as the primary reason why perhaps some traders may have temporarily migrated to Binance Smart Chain (BSC) to trade altcoins, pushing up the price of BNB.
“Ethereum needs to move much much quicker on layer 2 if it wants to wear that crown that it thinks it already owns of being the major layer one protocol and it’s going to capture that next wave of users coming down the pipeline. Because they certainly haven’t solidified it. Binance Smart Chain is proof of that. And they showed just how easy it is to disrupt this chain, to find one value proposition that Ethereum doesn’t have right now and find something that someone is willing to sacrifice which is absolute complete decentralization.”
While as of now, BSC and Ethereum appear to be in competition with each other, Merten posits that in the end, the two chains may actually coexist and complement each other.
“Could it be that both chains exist? Could it be that BNB almost services as a layer 2 on top of Ethereum? Some people argued against that. They say that other layer 1s can’t be layer 2s. They’re not even comparable here. I think that that’s quite biased.
There’s xDAI and a variety of other blockchain solutions and layer 2 solutions that are working right now that have about the same either centralized or relatively centralized components as does BNB and Binance Smart Chain. Could it be that Binance Smart Chain just found itself a spot as a potential layer 2?”