As mainstream users flocked to the blockchain industry in 2020, the shortcomings of existing protocols like Ethereum became even more apparent. With exponentially increased usage, the Ethereum blockchain nearly came to a halt. Meanwhile, gas fees skyrocketed to absurd levels.
As a result, we saw the emergence of more optimized layer 1 blockchains like Avalanche and Binance Smart Chain. These scalable smart contract platforms attempted to improve upon the drawbacks of existing protocols. Also, they were looking to provide a more efficient blockchain space.
In this article, we carry out an AVAX vs BNB comparison. We attempt to provide you with some fundamental information about these two blockchains. Moreover, we provide price predictions from reputable analysis websites to give you an idea of the potential of these assets.
BNB is the native cryptocurrency token of the Binance ecosystem. Initially, the asset had a single use case — to serve as a discount currency for people trading on the Binance Exchange. However, over the years, the use cases of BNB have exponentially multiplied. First, with the appearance of the Binance Chain, where BNB could be used as gas. Second, with the release of the Binance Smart Chain, a scalable smart contract platform similar to Ethereum.
It’s the latter that provided BNB the needed momentum to become one of the most praised cryptocurrencies in the industry. Thanks to the success of the Binance Smart Chain, BNB became an essential asset in the DeFi industry. Today, the Binance Chain and the Binance Smart Chain make up one system called BNB Chain.
Today, BNB is used as gas on the chain, but equally plugged into the emerging Web3 ecosystem of the BNB Chain. Decentralized exchanges, metaverses, social networks, NFT marketplaces, and blockchain play to earn games — all use the BNB base currency.
Despite the bear market, the BNB Chain still shows signs of growth with an average of more than 3.5 million transactions per day. This, in turn, solidifies the BNB token as a sound asset in the industry.
BNB Price Prediction
The fundamentals of BNB allow price prediction websites to provide high targets for the future. Moreover, unlike most cryptos, BNB managed to hold onto a good portion of the value that it acquired during the 2021 bull run. For reference, BNB is currently trading at $240.
Priceprediction.net provides the following price targets — $748.87 for 2023 and $4,396.94 for 2030.
Digitalcoinprice.com gives a similar short-term prediction for 2025 — $865.79. However, their long-term prediction is more conservative, with a price of $2,513.41. These predictions provide a good case for converting MEME to BNB and making a profit.
Avalanche is a highly scalable blockchain that uses a novel approach to provide smart contracts for the mass adoption of blockchain technology. The platform uses a triumvirate of blockchains, each one with a specific task in the ecosystem:
- X-Chain — an exchange chain that handles all asset exchanges in the ecosystem.
- P-Chain — the chain that hosts the validators of the protocol and runs the novel Snowball consensus mechanism.
- C-Chain — a subnet that runs the smart contracts and dApps on Avalanche.
These subnets work in tandem without interfering with each other, allowing for high throughput on the chain. Simultaneously, the gas fees on the protocol remain low, thanks to the linear scalability this architecture provides.
AVAX Price Prediction
Despite its novel approach to blockchain technology, Avalanche has struggled to hold liquidity in its ecosystem. Consequently, the price of AVAX has fallen from an all-time high of $128 to a current level of $12.
Regardless of the current market conditions, analysts still provide some bullish predictions for AVAX. Priceprediction.net hopes to see the token reach $38.20 by 2025 and $255.08 by 2030.
For the same periods, digitalcoinprice.com provides targets of $46.18 and $132.94 respectively.
AVAX vs BNB: Best Investment Option
In the current market, BNB looks like a smarter investment, thanks to the ongoing success of the BNB Chain. However, once market conditions turn more favorable, AVAX has more upside potential, due to the low prices it’s currently trading at.
In conclusion, BNB will provide smaller returns with lower risks, whereas AVAX might allow traders to make a high-risk, high-return play.