Ethereum is facing fresh competition from an old rival, this time in the Non-Fungible Token (NFT) market.
Binance Smart Chain (BSC) is tasting a new territory after $2.2 million (10,089.5 BNB) was seeded to finance the minting of Binance punks.
A new platform called Binance Punks is overseeing the development of the new NFT marketplace.
“We are working had to get the marketplace front end ready asap,” tweeted Binance Punks.
According to its Twitter bio, Binance Punks was created to “give everyone on BSC a chance to be a part” of the growing NFT market.
We are working hard to get the marketplace front end ready asap. These punks sold out way faster than expected. If you need to you can interact with the contract https://t.co/ZzV3Hab6Tt
— Binance Punks (@binancepunks) February 23, 2021
The NFT marketplace has largely depended on the Ethereum blockchain.
Larva Labs, a team of two people who have been in the digital art market for a number of years, warned that Binance Punks is taking art from CryptoPunks and “selling it as a copy on another chain.”
Warning: There is a project called "Binance Punks" that has taken the art from CryptoPunks and is selling it as a copy on another chain. This is in no way an authorized project.
— Larva Labs (@larvalabs) February 23, 2021
Larva Labs’ warning will likely not deter Binance Punks from going ahead with its plans, which are new and unknown.
Binance Punks are entering into a growing space dominated by Ethereum.
However, the history of the crypto industry is filled with the introduction of new blockchains or protocols meant to compete against incumbent players.
Binance Smart Chain and Ethereum
The Ethereum blockchain has been the platform of choice for decentralized finance (DeFi) projects the same it was the big player in the 2017 ICO boom.
Ethereum’s growth could also be its undoing as gas fees continue to soar high amid high usage on the network.
This presents an opportunity for competing for blockchains to grab a share of the market.
This presents an opportunity for Binance Punks to enter the NFT market. It will be an alternative to Ethereum, and counts on the fact that BSC is a well-known blockchain backed by Binance.
A growing NFT market and surging BNB price
Crypto Punks’s success could be buoyed by the recent growth of the NFT market as well as soaring BNB prices.
The NFT market is worth over $100 million and punks are being sold for millions. The boom has come amid a cryptocurrency rally that seems to be slightly cooling off.
Binance Coin has been a major beneficiary of the current cycle after its price broke above $300 and stormed into the top 3 cryptocurrencies by market cap. It has shed around 30% of its value and is trading at $200 a coin.