Crypto trader and analyst Nicholas Merten follows the meteoric rise of well-known altcoin Binance Coin (BNB) to an all-time high of $342 in the analysis.
Nicholas Merten: Highlights the rally of prominent altcoin Binance Coin (BNB)
Nicholas Merten shows BNB at $38 in early 2021 in a new DataDash image lies attention to the angry rally that began. The analyst says this rally is sparking a narrative that Binance Smart Chain, the cryptocurrency and fuel protocol, could take over the decentralized finance (DeFi) space. The crypto analyst delves into the differences between two leading smart contract protocols to explore the possibility of converting BNB to Ethereum (ETH). Nicholas Merten adds his comment on the bet:
The irony in general is that Binance Smart Chain is actually very similar to Ethereum. Binance Smart Chain is basically similar to a direct fork of the Ethereum blockchain. In terms of robustness and how the code can be carried over from the classic Ethereum implementations to Binance Smart Chain… So all this functionality is flawless… The big difference here is that Binance Smart Chain has several standout validators in this case. Unlike Ethereum, which undergoes a mining process and has thousands of nodes worldwide in a very decentralized format, Binance is much more centralized. That in itself isn’t a great thing, but as more assets grow on the network it can become a source of excitement, just like you have more assets on a centralized exchange… Binance Smart Chain has actually managed to build a system where GAS prices are as good as non-existent.
Nicholas Merten: Ethereum is still not out of the running!
Nicholas Merten adds that while Binance Smart Chain has the advantages that come with its prestige, network impact and low prices, he still believes Ethereum is not out of the running. Nicholas Merten adds:
When it comes to DeFi or decentralized finance, the key thing that will determine Ethereum’s dominance in the market is the implementation of second-level scaling. We haven’t seen this now in terms of some valuable protocols like Uniswap. However, as they continue to announce that they are working with scaling solutions like Optimism, it could be in play. This changes the rules of the game.
Master Analyst: I see no problem investing in BNB
Crypto Analyst, News about scaling solutions implemented on decentralized exchanges like Uniswap v3 is probably stressed in Ethereum’s DeFi that he will strengthen his position as chairman. Nicholas Merten, who oversees Binance Coin, believes the coin has a good chance of going up even if it looks exhausted in the short-term. The analyst believes that there is at least a 10% chance that Binance Smart Chain will eventually dominate the market. Nicholas Merten also stated that he saw no problem investing in BNB.