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According to Arcane Research 2021 data, Binance Coin (BNB) had a very strong year with a 1344% increase.
Bitcoin and Ethereum also ended the year in positive territory with 73% and 455% returns. Both cryptocurrencies made it into the top four projects by market capitalization, with Tether (USDT) and Binance Coin taking the third and fourth places.
Note that BNB is the largest coin in terms of trading volume on Binance and on the Binance Smart Chain (BSC) network. The BSC platform supports the smart contracts required for DeFi services and enables low-cost transactions.
It was low commissions that helped take market share from the current leader in smart contracts on the Ethereum blockchain.
Last year, the Ethereum blockchain handled over 95% of NFT and DeFi transactions, however, the network still has scalability and congestion issues that will not be resolved until the rollout of ETH 2.0.
In addition, high transaction processing fees were a big problem, which could reach $ 100-200 during peak periods. Sometimes these figures exceeded the value of the NFT asset itself or the DeFi transaction.
The Arcane report compares transaction fees across different blockchains. For example, the average transaction fee on the Ethereum network is $21, on the Bitcoin blockchain it is $3. Other blockchains like Binance, Solana, Polygon, Energi and others charge just a few cents.
Despite impressive growth last year, based on its current market cap, BNB still has room for growth. Presumably in 2022, the coin can expect to grow by 3-5 times.
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