Is Binance Coin (BNB) still in third position, as it was at the beginning of this year? Since its low of $183 in mid-June, BNB has risen 66 percent. The market capitalization is now worth $50 billion without stablecoins. We see that Binance Coin is still in third place when we remove the effect of steady coins from the equation. When you look at how much the broader altcoin market cap fell by 73 percent in November 2021, it’s clear that Binance Coin has outperformed tremendously.
The chart above shows how the smart contract blockchain network suffered during the recent market collapse, and how similar movements happened across the altcoin market. Now that BNB price has reached $300 again, let’s take a look at how the asset is positioned compared to July 2021 when it traded for the same price.
Is Binance’s market capitalization and valuation appropriate? The altcoin market value was 21% higher at $740 billion in July 2021. Bitcoin (BTC) and Ether (ETH) had already solidified their roles as market leaders, but the battle for third place was far from resolved, at least in terms of the overall value.
Smart contracts are the foundation of all decentralized apps, including decentralized finance, gaming, marketplaces, social networks, and a slew of other applications. So what more criteria can be used to predict the success of a project besides the number of active users using addresses as a proxy?
PancakeSwap, BNB Chain’s decentralized exchange, boasts 1.98 million active users- a number so large that the next four closest competitors combined don’t even come close to matching it. In fact, data shows that the runner-up hold 91% fewer users than PancakeSwap. For those questioning whether BNB Chain is all talk and no substance, the network has several games with 83,000 or more active players each as well as 78 450 people who use the 1inch Network daily.
Although it’s a valid question to ask if PancakeSwap really has that many users, only three DApps on the Ethereum network have more than 30,000 active addresses. These are Uniswap, OpeanSea and MetaMask Swap.
The fact that Binance Chain’s smart contract deposits set it apart from the competition is debatable. One might argue that the total amount of funds held by users in smart contracts is influential in determining a network’s success. While this is quite true for financial apps, marketplaces, games, collectibles, and social networks do not need to keep huge reserves.
Binance Chain is currently in third place, with $5.5 billion in TVL, which is more than twice Ava (AVAX) and Polygon (MATIC). Data shows a consolidated third place for Binance Chain with $5.5 billion in TVL, which is more than double Avalanche (AVAX) and Polygon (MATIC).
Binance is the most popular cryptocurrency trading platform. The Binance exchange offers better liquidity than any other crypto or traditional stock-based marketplace owing to an increased number of traders and strong funding growth, despite a decrease in daily volume. When accounting for the BNB’s value, especially when compared to smart contract blockchains, there’s a need for a distinct approach because the token confers extra utility on the Binance exchange. Furthermore, providing reduced trading fees, access to token sales launchpad privileges, and unique staking opportunities helps differentiate BNB from its competitors.
Based off of SimilarWeb, in one month Binance had 300 million website visitors while Coinbase only had 121 million. So, if FTX Token (FTT) has a $5 billion market cap then it would make sense that logically BNB should be five times larger due to Binance’s utility benefits. Discounting nearly half of BNB’s $50 billion market cap for an equivalent metric is what analysts should when making comparisons with smart contract platforms.
BNB is fairly priced considering its global market capitalization ranking (third place when stablecoins are removed), leaderboard position in terms of DApps users, third place TVL deposits and exchange volume dominance.
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