After two years of difficult price movements, the cryptocurrency markets are finally experiencing some positive momentum. While Bitcoin has been on the rise since the beginning of 2023, altcoins have only recently started to gain traction.
As a result, investors are searching for the best opportunities in this potentially bullish cycle. Altcoins tend to outperform Bitcoin significantly during these periods. In light of this, we will be comparing CELO and BNB to provide you with the necessary information to decide whether you should exchange CELO for BNB.
CELO vs BNB: Where Can They Be Used?
One of the first questions that arises when buying a cryptocurrency is, “Where can I use it?” Each crypto asset has a specific use case, and this applies to CELO and BNB as well.
CELO is the native asset of the Celo blockchain, which aims to provide users with a lightweight platform for deploying decentralized applications. Users who hold CELO can use it to pay for gas fees when transacting on the chain, including interacting with smart contracts. Additionally, CELO serves as the governance token of the proof-of-stake blockchain, allowing users to vote on important development decisions.
BNB, on the other hand, is the utility cryptocurrency of the Binance ecosystem, which includes the Binance Centralized exchange, the BNB Chain, the BNB launchpad, and Binance Pay, among others. BNB can be used on the Binance exchange to pay for trading fees at a discounted rate. It also serves as gas and staking on the BNB Smart Chain.
CELO vs BNB: Underlying Technology
The Celo project focuses on carbon neutrality and aims to provide green blockchain technology through its proof-of-stake consensus. It utilizes a set of 110 decentralized validators that must stake CELO to participate in the consensus. Celo has a mobile-first approach and aims to democratize blockchain technology for smartphone users. To achieve this, it employs the Oblivious Decentralized Identifier Service (ODIS), which allows users to maintain privacy while staying connected to the blockchain. Following the Donut fork in 2021, Celo now supports EVM dApps and is compatible with Ethereum-based code.
BNB was initially launched as an ERC20 token to support the ICO and fund the launch of the Binance Exchange. However, the token was later migrated to its native blockchain and adopted the BEP20 token standard. The BNB chain, released in September 2020, utilizes the Proof of Staked Authority (PoSA) consensus, which is a permissioned validator system. Only vetted validators can participate in the consensus of the BNB Chain.
CELO vs BNB: Market Performance
Celo has lost much of its momentum from the 2021 bull market. After reaching a price above $7 per token, its value has been in decline ever since. Currently, CELO is trading at $0.79, making it an attractive entry point for the market. However, the Layer1 industry is highly competitive, with chains like Avalanche and Solana posing significant challenges to Celo.
BNB has performed well in the last month, gaining nearly 50% in value. The bear market in 2021 caused prices to drop as low as $200 due to Binance’s legal issues with the SEC. Currently, the price of BNB hovers around $320.
CELO vs BNB: Tokenomics
CELO has a capped supply of 1 billion tokens, with 52% of the supply currently in circulation. The tokens will continue to unlock linearly until 2050, resulting in an average inflation rate of 2% per year.
BNB does not have a maximum supply, and there are currently 153 million BNB in circulation. The protocol employs various burn mechanisms, which have destroyed approximately 25% of the total supply to date.
Get Ready for the Exchange
While Celo may not have the same level of popularity as BNB, it still holds significant potential. However, the price action of the CELO token has made it difficult for investors to find upside in the past year. BNB has consistently outperformed CELO, and analysts believe this trend will continue.
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Disclaimer: This content is provided for informational purposes only and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
