BNB to BTC: Should You Make the Transaction?

BNB, the token of the Binance ecosystem, has shown immense growth in the last couple of years. Bitcoin, on the other hand, is the indisputable leader of the market, by a large margin. Although they’re both performing well in the market, would it be a good idea to trade BNB to BTC now?

BNB Overview

BNB, previously called Binance Coin, is the token that powers all the Binance crypto ecosystem. It runs on two blockchains developed under this ecosystem: the BNB Beacon Chain and the BNB Smart Chain (BSC). The former deals with governance and staking, while the BSC runs smart contracts and DApps. Both chains use a Proof-of-Stake (PoS) consensus mechanism. To become a validator, nodes must stake 10,000 BNB tokens, and be selected as an elected validator.

It became highly popular for various reasons. The support of Binance plays a big role, since it’s the most used crypto exchange worldwide. But also, it performed really well at a time when Ethereum was congested, experiencing high fees and low transaction times.

Key Features

BNB tokenomics also contributes to its growth in the market. At launch, it was announced to have a max supply of 200M BNB. However, the protocol periodically burns a portion of the overall circulating supply. This way, they reduce the number of coins in circulation which, paired with a sustained demand, drives the price upwards.

Moreover, the compatibility with the EVM also contributed to the adoption of the BSC and BNB at the center of the blockchain. It made it easy for developers to migrate or replicate DApps from Ethereum to BSC. And there was a flood of users who wanted to use DApps and DeFi protocols moving to this new chain.

Market Performance

The BNB token is ranked #4 by market capitalization, only surpassed by Bitcoin, Ethereum, and USDT. This stablecoin has reached such a high rank in the market, mainly due to its presence in numerous blockchains, including BSC itself. You can check any USDT vs BNB comparison to see their differences, especially regarding daily volume, where the stablecoin ranks first among all cryptos.

In the next couple of months, market analysts predict BNB to keep growing. By year’s end, it’s expected to be worth around $980 — 68% higher than its current price.

What’s New With BTC?

During 2024, Bitcoin has had its fair share of news and events. Starting with the ETF trading, in December, the price of BTC later felt the impact of the mining reward halving, in April. By mid-March, it reached a new ATH at $73,750. And now, after a short correction, it is making gains again.

Key Features

Bitcoin was the first cryptocurrency to be created, and it has remained loyal to its initial principles. While the ecosystem is steering towards PoS mechanisms, Bitcoin still preserves its Proof-of-Work (PoW) algorithm. It’s also one of the most decentralized networks, where we don’t even know about the identity of its creator. These features contribute to Bitcoin’s prestige and prevalence in the market.

Market Performance

The price of BTC has been growing since October 2023. Despite a few corrections, it has grown 50% year to date, and 150% since October. Although some analysts argued that the bullish market was over, this has not been the case. In fact, BTC is expected to reach $109,300 by year’s end, and it will likely grow in the coming years.

Should You Make the Swap?

BNB is definitely a strong cryptocurrency, with a solid ecosystem and market presence. However, Bitcoin is a sure shot in any investment portfolio. Swapping BNB to BTC, even a small portion of your assets, is a way of exposing yourself to greater gains. Owning both assets can be more profitable than choosing between one or the other.

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