Binance Coin Named “2021 Winner” By Crypto Research Firm

It’s official, this was the year of Binance Coin. There are no two ways to do it, BNB crushed it throughout 2021 and it established itself as the third most popular coin in the world by market capitalization. No small feat, considering what a phenomenal year altcoins had. Several projects had their time in the sun, capturing capital, headlines and attention. However, no one got close to Binance Coin.

Stellar performance of Binance Coin | Source: The Weekly Update

According to Arcane Research’s weekly update:

“Bitcoin may have beaten the stock market in 2021, but other cryptocurrencies have left it in the dust. Binance Coin (BNB) has the best performance of the three largest cryptocurrencies by market capitalization, with a gain of 1344%. The Binance Smart Chain ecosystem has seen massive growth in 2021, taking market share away from Ethereum.

This is why they named Binance Coin as ‘the winner of 2021’, and their point is well taken. However, there is more to the story. Binance as a company was in trouble for a while there. And its own validators criticized Binance Smart Chain, saying things like, “There doesn’t seem to be any reasonable testing process in place. Each update seems to make things worse.

Let’s explore the tumultuous year of the Binance Coin ecosystem.

Large projects decided to operate on Binance’s smart chain

It cannot be denied. As The Weekly Update puts it, “Ethereum has lost its undisputed position as the” only “smart contract platform.” And Binance has a lot to do with it. A controversial project from the start, Binance Smart Chain has been dubbed a centralized clone of Ethereum. And the critics are right. However, even though the Binance team forked the Ethereum code, they were always upfront with the direction of the project.

In the BSC documentation, the team blatantly states that “Binance Smart Chain uses a consensus model called Proof of Stake Authority (PoSA). (…) This consensus model can support a short block time and low fees, and it only requires 21 validators to run «. Compare that to the 11,000 nodes that supposedly support the Ethereum ecosystem.

However, his plan worked and the projects flocked:

“Binance Smart Chain was explicitly developed to solve Ethereum’s rising gas fees and offers faster, scalable and cheaper transactions. In the past, several alternative blockchains have tried to become ‘Ethereum Killers’, but failed to capture the interest of a new project. However, Binance Smart Chain hosts numerous blockchain, Defi and crypto projects. “

Problems and connection with the Binance coin

However, as in the case of Ethereum, the success came with scalability issues. A set of validators took to GitHub to raise concerns about the health of the network and how the cost of running a full node has increased dramatically. “There is no code review, the patches are simply compromised, in most cases even without a proper description of what they do or what problem they are trying to solve,” the original poster read.

“I have seldom seen anything handled so unprofessionally,” charged the OP. “I have a lot of full nodes running there and now none of them can sync. Each of these servers costs me $ 800 per month (previously only $ 200), then you told me that I need faster bandwidth and disk, which means the cost will continue to increase, ”stated one commenter.

What does this have to do with Binance Coin? Everything. As the native currency of the Binance ecosystem, the success of BNB is tied to the success of the entire network. Binance is still doing amazing, but can Binance Coin holders count on that to be the case in 2022?

BNB Price Chart for 12/29/2021 on Binance US | Source: BNB / USD on TradingView.com

Make no mistake, Binance Coin won 2021

It was an action-packed year, but Binance Coin passed the test. In addition to the validator lift, the Binance team dealt with these flash loan tricks and kept the price of BNB on the rise throughout the year. When CZ himself asked other entrepreneurs to create their own coins, NewsBTC was the voice of reason:

“Binance is not only the largest exchange in the world; it also has the most activities, functions, and things to do. BNB drives all of that. How many currencies does that huge ecosystem support? How many currencies have that many use cases? And yes, BNB provides its users with superpowers while in the Binance ecosystem and helps them save money. How many other coins can do something similar? «

Make no mistake, the Binance Coin AKA BNB is a unicorn. A unique project that did many things well and rewarded the early believers with a phenomenal year. A 1344% price increase is not something we see every day. Congratulations to Binance Coin for owning 2021.

Featured Image: Fundición on Pixabay | Charts by TradingView and weekly update

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Binance Coin Named “2021 Winner” By Crypto Research Firm

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