This is what BNB did this week.
BNB or Binance Coin is a utility coin you need to transact on Binance Smart Chain (BSC). Regardless of how centralized or decentralized BSC is, transaction fees on Ethereum are intolerable for a lot of users already.
Take a look:
Source: https://etherscan.io/gastracker
$30 for adding or removing LP on Uniswap!
Smart contracts are expensive to run on a PoW chain with as much use as Ethereum as. Every operation has a specific cost in gas and the price of gas in turn depends on how much demand there is for transacting on Ethereum. Here are some examples:
Source: https://fullstacks.org/materials/ethereumbook/14_evm.html
But we've seen nothing, yet. ETH costs $2141 at this moment. If the past bull cycles are anything to go by, the blow off top ending this bull market when the momentum chasers finally run out of money and exuberance will come only in the last quarter of this year. If the price of BTC is anything between $200,000 and $400,000 and ETH is between $5000 and $15,000, you can imagine that the transaction fees will be much higher because many more people will be clamoring to use Ethereum.
None but those with the largest balances will be able to transact on Ethereum. Where will these people go? Binance Smart Chain, of course! BSC just dropped its transaction fees in BNB because the price of BNB went up. What we will see is some serious volume on BSC. When people see the fundamentals of BNB skyrocket, they will buy the coin. In fact, there will be a lot of new users having to buy the coin regardless of whether they want to trade it.
By the way, I'd like to remind you that the best Farm to be on CubFinance is CUB-BNB. That's the fastest way to accumulate CUB and will remain so for as long as the bull market lasts.
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I wish I was paying more attention to BNB, it went from $45 at the end of Jan to over 513 now??
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BNB is $517 now.
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513 I meant to write, and yes 517.50, I should get more.
Going to watch closely for a good time to buy.
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I think any time is a good time to add to your position.
519.01 now, I think you are right!
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If ETH crashes will BNB crash too? Or will it take off. What if nobody crashes and all crypto goes to pluto and out of this solar system?
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If ETH crashes, transactions fees on Ethereum will come down because the crash will be brought about by people dumping ETH and going elsewhere. The low transaction fees on BSC as opposed to the intolerably high are the reason many people are leaving Ethereum and opting for BSC.
All crypto will always crash at the end of a bull market.
Posted Using LeoFinance Beta