Binance Coin, the token native to the Binance network, lost its longstanding position as one of the top 3 cryptocurrencies on the market. When Cardano hit a new all-time high, it put BNB in fourth position at CMC.
Now it really feels like Cardano is the third generation cryptocurrency. Except that BNB seems to be trying to reclaim its place. But will it ever be able to do that?
Binance Coin on the rise?
Many BNB supporters are about to get upset, but the answer is likely no. Yes, BNB has increased almost 13.97% in the last 72 hours. However, even this increase could hardly contribute to the total increase of 70.6% in the course of the month.
Cardano, however, was up 27% in just 3 days during the month, estimated by 131%.
The reasons for winning Cardano are many. Above all, low prices and higher liquidity make ADA the focus of interest. ADA’s recent rally attracted investors, with the latter finding an altcoin with a lower price at an easier entry point.
Since Cardano has a higher supply than BNB, the liquidity also becomes easier. This is another reason why BNB has fewer active addresses in comparison.
Second, the NBB did not notice any major changes in terms of profit / loss either. For almost a month, gains have not driven the indicator apart from a few minor spikes.
In addition, the development activities seemed to indicate that Cardano was seeing consistently high development. On the contrary, Binance Coin only rose briefly between August 3rd and 6th before falling again.
But what about its market value?
The market value of the Binance coin is the only factor that supports BNB in terms of the metrics.
In fact, the MVRV ratio tells us that the fourth largest cryptocurrency still has fair value as an asset. However, this won’t be able to improve BNB’s rank as Alonzo is on the way for Cardano.
While Binance Smart Chain (BSC) has already rolled out smart contracts on its network, it may never attract too many developers. For starters, Ethereum remains the undisputed leader in this space. Also, many have argued that BSC is too centralized and only relevant because it competes with Ethereum.
Smart contracts will be active on Cardano within a month. Ergo there will be more reasons for developers and investors to join the network.
Can the NBB regain its third place? Well, it’s a tough one, but the crypto market has taken unexpected turns in the past. After all, this is an industry where DOGE is among the top 10 alternatives. So who knows?