Cryptocurrency

Binance Coin (BNB) vs Ripple (XRP): Comparative Analysis

Binance Coin (BNB) vs Ripple (XRP): Comparative Analysis

INTRODUCTION

Binance coin and XRP are two of the largest market cap coins, and lead a large crypto community following thanks to its various utilities and benefits. There will be a time when you will need to decide which coin you want to pick and this article will help you choose just that.

WHAT IS BINANCE COIN (BNB)?

The Binance Coin is the token issued by the Binance crypto exchange. Earlier, it was an Ethereum-based ERC-20 protocol token but is now a native token of the exchange’s own blockchain – the Binance Smart Chain. It was created initially as a utility token for discounted trading fees in 2017 but now has expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services. 

The Binance Smart Chain network has a Total-Value-Locked of $5.9 billion, according to data from DefiLlama on 30 June 2022. However, amid poor broader market sentiments over the past few months, it has fallen by a staggering 75% from its November 2021 levels. Notwithstanding that, it still remains the second-biggest DeFi protocol in terms of TVL, second only to Ethereum itself.

Additional Read: Binance Coin (BNB) Price Prediction

UNIQUE FEATURES OF Binance Coin

  • Total Value Locked

Binance Smart Chain is the second largest blockchain in terms of Total-Value-Locked in smart contracts. As mentioned earlier, according to data from DefiLlama, BSC has a total TVL of over $5.9 billion as of writing this. 

Read more: Total Value Locked Explained

  • DeFi protocols

Binance Smart Chain has over 390 DeFi protocols running on the chain. This indicates huge positive sentiment amongst the BSC community members and that investors in this project are in it for the long term.

  • Trust

Thanks to the two figures mentioned above, it also goes on to suggest that the community has a high trust value in the blockchain network. There is huge developer activity on the chain, second only to Ethereum’s smart chain – suggesting there will be continued demand for its utilities in the future as decentralised finance becomes more and more commonplace.

Also Read: Binance Coin Technical Analysis

Latest News on BNB:

In July Binance introduced DappBay, a platform that gives users practical help in discovering innovative Web3 projects. The platform features an easy-to-use contract risk scanning tool, Red Alarm, which identifies potential high-risk projects to help users protect their investments from potential risks.

Not only did BNB introduce a new platform for Web3, but also introduced a new token in the Binance chain. Stader Lab recently introduced a staking token, BNBx on the BNB Chain. Stader Labs announced its new products last month and the newly introduced token will work toward maximizing yield while maintaining liquidity.

Also Read: Top 10 Crypto to Invest

WHAT IS XRP?

XRP is a crypto that runs on the XRP Ledger, a blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz. McCaleb and Britto would go on to found Ripple and use XRP to facilitate transactions on the network. It is a money transfer network designed to serve the needs of the financial services industry via a decentralised blockchain system.

While XRP is based on a blockchain network, meaning it is composed of a decentralized ledger system, however, it does maintain an aspect of centralization via a consensus protocol – since it is built to serve the industry. The consensus protocol takes care to assign transactions to valid nodes that it thinks are least likely to defraud them.

While most other proof-of-work blockchain systems use a ‘mining’ system to reward those validating transactions on the chain, XRP is actually ‘pre-mined’. A total of 100 billion XRP has already been mined and is released to the public in a systematic manner. A point on the contention that has been rife in the XRP community is the fact that Ripple Labs owns a sizable portion of the total supply of the coins which leads to major trust issues.

Additional Read: How to Invest in Ripple (XRP)?

UNIQUE FEATURES OF XRP

  • Fast settlement

Transaction confirmations are incredibly fast. They generally take four to five seconds, compared with the days it may take banks to complete a wire transfer or the minutes or potentially hours it takes for Bitcoin transactions to be verified.

  • Very low fees

The cost to complete a transaction on the Ripple network is just 0.00001 XRP, a small fraction of a penny at current rates.

  • Versatile exchange network

The Ripple network not only processes transactions using XRP. But it can also be used for other fiat currencies and cryptocurrencies.

  • Used by large financial institutions

Large enterprises can also use Ripple as a transaction platform. Santander and Bank of America are a few using this network, demonstrating it already has larger institutional market adoption than most cryptos.

Also Read: Top Cryptos Under $1

Convert latest XRP Price in BNB

Latest News on XRP

The Binance card, which supports crypto transactions for goods and services, has incorporated three new altcoins, according to the latest news! The card holders can now access XRP along with SHIB and AVAX!

Keep an eye out for top crypto news on the crypto space right here on CoinDCX Blog!

BINANCE COIN VS XRP

Coin Name Binance Coin Ripple 
Launch Date 2017 2012
Founder Changpeng Zhao Jed McCaleb, Chris Larsen
Blockchain Protocol Binance Chain XRP Ledger
Native Token   BNB XRP
Market Cap $50,820,033,620 $18,047,194,990
Token Type Native ERC 20
Circulating Supply 161,337,261.09 BNB 48.34B XRP
Max Supply 200,000,000 100,000,000,000
Consensus Method Proof-of-Staked Authority (PoSA) Ripple Protocol consensus algorithm

PROS & CONS OF BNB & XRP

1. PROS & CONS OF BNB

PROSCONS
Binance Coin Is One Of The Best Utility TokensBinance Coin Is Heavily Centralised:
Binance Coin Uses A Unique Burning Mechanism
Regulators Around World Are Behind Binance Over Compliance
The Binance Exchange Is Very PopularBinance Is A Major Target For Cyber Attacks
The Binance Smart Chain Could Beat Ethereum:
Heavy Competition With Other Smart Contract Cryptos

2. PROS & CONS OF XRP

PROSCONS
XRP Transactions Are Fast & EasyRipple's Consensus Protocol is Arguably Less Secure than Others
Ripple's Network Already in Use By Financial InstitutionsBanking Partners Use RippleNet and not XRP crypto
Can be Used As Bridge Currency for International Currency TransfersFacing Slack Over Being Run by Private Company & the SEC Lawsuit It is Facing

BNB vs XRP – PRICE PREDICTION 

HOW HIGH BNB PRICE GO IN 2022?

Binance Coin has been one of the star performers of 2021 and despite the crash of 2022 – it can be expected to make one of the quickest recoveries as and when the market recovers. Multiple times in the past, since the beginning of 2022, it has attempted a breakout from the downtrend but the pessimistic cues broader market brought it back down.

Also read: Binance Coin Price Prediction 

HOW HIGH XRP PRICE GO IN 2022?

The Ripple’s XRP price after a gigantic bull run in 2021, remained heavily consolidated in a descending trend in 2022 till now. And as the price has slipped down to the bottom it has not visited for a year, the rest of the yearly trade may be utilized for recovery. However, the possibility of a bull run can be expected to be low in 2022.

Also read: XRP Price Prediction 

Source: Tradingview

Ever since the beginning of 2022, both BNB and XRP have been on a steady downward trend, with little or no upside strength. While the SEC vs Ripple lawsuit has been plaguing the XRP token for quite some time, BNB has succumbed to broader market bearishness. And hikes in interest rates across all major economies in the world haven’t been the most supportive either.

Technically speaking, days that saw major shedding of value were also accompanied by huge trading volumes, suggesting further weakness. Both these tokens are also trading well below their 200-day moving averages too.

Check latest XRP INR Price & BNB INR Price, Charts, Data & More

BINANCE COIN Technical Analysis

Binance coin or BNB prices have reacted extremely well to the recovery that has been happening over the past few weeks, especially since the beginning of July. Considering it is the third largest crypto by market cap, it has given an incredible 60%+ recovery from its lows back towards the end of June. It has gone from sub-$200 levels to well above $300 in the matter of 5 odd weeks and has breached into a stiff accumulation zone between $280-$330. If the market doesn’t provide any major run-up soon, BNB prices may remain stuck within this range for a while before attempting a breakout. 

It has had a healthy run-up so far, and investors can rest easy if they have investments in this particular token for the next couple of weeks, assuming the markets don’t turn ugly very quickly.

Source: TradingView

XRP Technical Analysis

XRP’s performance, when compared to BNB’s price performance has been rather lackluster. It has managed to gain some amount of its ground back but it isn’t that much. While the overall crypto market has recovered over 40% from its recent lows towards the end of June 2022, XRP has only managed to recover about 30% in the same timeframe – indicating its laggard behavior. 

However, it has come very close to convincingly breaking out of the upper limit of its accumulation zone between $0.3-$0.38 – and is now currently trading near $0.37. In the coming weeks, if the token is able to breach the $0.38 level, we may see some healthy positive action in XRP prices too.

Source: TradingView

SHOULD YOU BUY BNB OR XRP?

Well, in current market circumstances, both BNB and XRP are well-known coins with strong community and developer backing. While neither of these are trying to compete with each other – both come forward with a set of unique use-cases that may trigger widespread adoption in the future.

While XRP’s promise of cheap cross-border remittances has become the lifeline for those staying in poorer countries and developing economies, BNB’s DeFi protocols are some of the largest in the marketplace. These include DeFi protocols like Alpaca Finance, Venus Lending, and PancakeSwap. 

In terms of value lost in the current bear run, both have been somewhat similar since the overall market touched its all-time high around November 2021. BNB has shed around 69% since then, while XRP has lost around 77%. However, despite that BNB has a market cap that is more than double that of XRP’s. All these points need to be taken into consideration before investing.

HOW TO INVEST IN BNB & XRP

Binance Coin (BNB) and XRP can be easily bought here on CoinDCX along with the best deals in the market. Just download the CoinDCX App crypto app, enter the details required and wait for your profile to get verified. Once done, fund your wallet and you can now buy the token of your choice.


Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


FAQs

WHAT IS THE MAIN DIFFERENCE BETWEEN Binance Coin and XRP?

The major difference between BNB and XRP lies in their consensus mechanism. While BNB works with Proof-of-Staked Authority, XRP works on its own Ripple Protocol consensus algorithm.

WHICH IS FASTER, BNB vs XRP?

BNB is faster between the two tokens.

IS BNB A GOOD INVESTMENT OR XRP?

Both the assets have their own strong points. When choosing between the two it is imperative to do a thorough analysis and research.

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