This year, the old guard of crypto currency has lost ground to higher returns tokens. Researchers predict that the trend could continue.
Of the three biggest digital tokens by market value, Binance Coin, or BNB, has significantly outperformed its 2 biggest rivals Bitcoin & Ether. The coin issued by the crypto currency exchange Binance Holdings Ltd. gained about 1,300% in 2021, according to Arcane Research, the market leader Bitcoin rose 65% while Ether, the second largest token, rose 408%.
BNB is widely used on Binance, the world’s largest crypto currency exchange by volume. It is also the native currency of Binance Smart Chain, a blockchain platform that supports smart contracts for use in decentralized finance (DeFi) & other applications. With BSC gaining members as a challenger to Ethereum blockchain, which helped fuel BNB token gains, according to Arcane Research.
Other alternative coin, or “altcoins,” saw significant gains in 2021, benefiting from an explosion of investor interest in digital assets & an expansion of crypto ecosystem. Solana & Fantom, coins linked to other blockchain platforms that support smart contracts, for example outpaced Binance Coin’s returns.
“While Bitcoin has shown strength in 2021, we have seen a steady flow of capital trickling-down in-to altcoins,” the research firm wrote in a statement. Company analysts predict the strongest momentum in tokens linked to Metaverse & GameFi, as well as “ETH killers” targeting Ethereum.