BNB price breaks $ 600, analysts warn of centralization of Binance Chain

Binance's BNB token hit a new all-time high of $ 640 on April 12.

The last couple of months BNB has been sharplygrew in price.The token took third place in terms of capitalization, confidently ahead of its competitors. Today, BNB reached its new high of $640, but quickly fell back below $600. At the time of writing, BNB is trading just above $590. Over the past 24 hours, the asset has grown by 25.3%, over the past week - by 70.6%. 

The Binance network is also seeing an increase in daily transactions. Every day, users conduct almost 5 million transactions per day. 

Binance has long held the leading position in the ranking of centralized exchanges in terms of trading volume. According to CoinMarketCap, Binance's daily volume exceeds Coinbase Pro by at least 10x.

Messari analyst Ryan Watkins warnscentralization of the Binance Smart Chain (BSC) network due to the BSC validator selection system and the centralized decision on blocking assets for staking and the order of block mining. 

Binance Smart Chain Powered By Consensus Proofof Staked Authority, with 21 active validators selected daily by Binance Chain, a network operated by just 11 validators. BSC validators block BNB staking. Watkins wrote:

It's hard not to assume that every validatorBinance Chain is somehow related to Binance. BSC is a fork of Ethereum with a centralized set of validators. And that's all. There is nothing more special about it. If you really think that BSC will become the world's settlement network, then you are deeply mistaken.

Watkins believes BSC is outpacing Ethereum due to the “magic of centralization” rather than “technological innovation.” 

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