While both are strong cryptos, the hype around Eth 2.0 gives ETH an edge
Binance Coin powers Binance and has a lot of uses, making it valuable crypto.
Ethereum is the number one smart contracts platform in the market and is not going away soon.
Ethereum has a lot of hype due to the transition to Ethereum 2.0.
Binance coin BNB/USD is the cryptocurrency that powers the entire Binance ecosystem. Anyone who uses Binance exchange or any of the other Binance services such as the Binance Smart Chain must have used Binance Coin at one point or the other.
Considering that Binance is highly innovative and is always coming up with new products that require BNB, there is no doubt that the value of BNB will go up over time. However, the coin burn is the most significant factor that guarantees BNB value growth over time. Binance has been burning BNB since it was launched, and this has played well into its value over the years. As the coin burn continues, it will play positively into BNB’s value.
On its part, Ethereum ETH/USD is the most robust smart contracts platform in the market today. Thanks to its dominance in smart contracts, Ethereum has recorded massive growth as investors adopt it for everything from NFTs to DeFi. In the last two years, Ethereum has also been working towards a move away from Proof-of-Work to Proof-of-Stake. The goal is to deal with the scalability issues that Ethereum has struggled with for years and become more energy-efficient.
Why Ethereum has an edge short-term
While Ethereum and Binance Coin are great investments long-term, Ethereum has a significant edge over BNB now that bulls are returning to the market. Ethereum has an edge because it is almost done with the much-awaited transition to Eth 2.0. Besides the hype around the change, Eth 2.0 has several intrinsic advantages for Ethereum.
Through Eth 2.0, Ethereum will be more scalable, incentivizing usage. On top of that, it makes Ethereum deflationary, which is good for its long-term value appreciation. It’s a matter of demand and supply – simple economics.
Binance Coin and Ethereum both have a lot of potential for long-term growth. They are both among the most fundamentally strong cryptocurrencies in the market. However, in the short term, Ethereum has an edge. There is a lot of hype around the final transition to Eth 2.0, a factor that could draw in lots of buying volumes.