Analyst: Binance Chain could send Ethereum "back to double digits"

20 Apr, 2019
by Richard Allen
Opinion
Analyst: Binance Chain could send Ethereum back to double digits

April 18 saw the launch of Binance’s own blockchain, Binance Chain. According to an analyst, the move might have a "devastating effect" on Ethereum.

Telegram-based market analysis and trading log, the Gem Club, explained on Thursday that new crypto projects had no reason to choose the Ethereum blockchain over Binance Chain. The analyst goes on to say that Binance Chain could even replace Ethereum when it comes to listing projects and issuing their tokens.

The prediction comes shortly after BNB’s impressive few days. The seventh largest cryptocurrency has seen gains 322% since January, making it the first cryptocurrency to break its all-time high since 2017.

Binance has confirmed that it will undergo a mainnet swap on April 23 that will see BNB holders exchange their Ethereum-based ERC20 BNB tokens for new BEP2 BNB tokens. This migration should also result in many ERC20-enabled BNB holders shift to BEP2-enabled wallets.

As NewsBTC states, while several major projects are leaving Ethereum for Biance Chain may result in the former facing short term losses, Binance Chain doesn’t include a smart contract feature. As such, projects seeking the decentralized contract settlement technology are more likely to stay with Ethereum.

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