Binance coin (BNB) has seen a 1,344 percent year-over-year gain in 2021
Despite the fact that both Bitcoin and Ethereum ended the year in the black, their respective returns of 73% and 455% were abysmal in comparison.
By market capitalization, they're all in the top four, with the exception of Binance Coin, which is currently in fifth place.
Binance, the world's largest crypto trading exchange by volume, and the Binance Smart Chain both use BNB as their native coin (BSC).
For DeFi services, the BSC platform allows for smart contracts and low-cost transactions.
With such low fees, the Ethereum blockchain, the current leader in smart contracts, has seen some of its market share eroded.
The Ethereum blockchain was responsible for more than 95% of NFT and DeFi transactions earlier this year.
While the Ethereum network is capable of handling more users, there are still congestion and scalability issues that must be addressed before ETH 2.0 can be deployed to the blockchain as a whole.
It has been difficult for the Ethereum blockchain to keep up with the record-breaking growth of NFT and DeFi transactions due to the current limitations on the Ethereum blockchain.
It is because of this that the fees for transactions on the ETH blockchain can rise as high as $100-$200 during peak periods
Anecdotally, these costs — in the cryptosphere referred to as "gas fees" — can be greater than the value of the actual NFT asset or DeFi transaction.
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