While both are strong cryptos, the hype around Eth 2.0 gives ETH an edge
- Binance Coin powers Binance and has many uses, making it a valuable crypto.
- Ethereum is the number one smart contract platform out there and isn’t going away anytime 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. Learn where to buy Binance Coin here.
Since Binance is very innovative and always comes up with new products that require BNB, there is no doubt that the value of BNB will increase over time. However, coin consumption is the most important factor that guarantees the growth of BNB value over time. Binance has been burning BNB since launch, and it has played into its value well over the years. As the burning of coins continues, this will positively affect the value of BNB.
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 a short-term advantage
While Ethereum and Binance Coin are excellent long-term investments, Ethereum has a significant advantage over BNB now that the bulls are returning to the market. Ethereum has an advantage as it is almost complete with the long-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.
Summary
Both Binance Coin and Ethereum have strong long-term growth potential. They are both among the most fundamentally sound cryptocurrencies on the market. However, in the short term, Ethereum has an advantage. There is a lot of hype around the eventual transition to Eth 2.0, a factor that could attract a lot of buying volume.
