Crypto

The Ultimate Guide To Binance-Peg Ethereum (Explained)

Guide To Binance Peg Ethereum

Last updated on March 2nd, 2023

While you are interacting with the crypto world, you may have noticed that there are 2 versions of ETH: Binance-Peg ETH and ETH.

What exactly is the difference between them, and how can you convert among these 2?

Here’s what you need to know:

What is Binance-Peg Ethereum?

Binance-Peg Ethereum is a representation of Ethereum on the Binance Chain (BEP2) and the Binance Smart Chain (BEP20). This is because native ETH is on the ERC20 network, which is a different network from BEP2 and BEP20.

Binance introduce pegged tokens to their blockchain networks (BEP2 and BEP20) for cryptocurrencies like:

  1. BTC
  2. ETH
  3. ADA
  4. BUSD

This is because these assets do not exist on the Binance Chain or Binance Smart Chain. As such, Binance locks up these assets and produces the Binance-Peg token to represent them on these networks.

Is Binance-Peg Ethereum the same as Ethereum?

ETH is a native token that exists on the ERC20 blockchain. Meanwhile, Binance-Peg ETH is an ETH token that exists on either the Binance Smart Chain (BEP20) or Binance Chain (BEP2). This means that the value of both Binance-Peg ETH and ETH will be equal, just that these tokens exist on different blockchain networks.

Both BEP20 and ERC20 are EVM-compatible networks, while BEP2 is not. You can find out more about why EVM-compatibility is so important here:

Is ETH (BEP2) the same as Ethereum?

ETH (BEP2) is the Binance-Peg version of Ethereum on the Binance Chain, and it is a representation of ETH on the Binance Chain. This is because Ethereum is a token that is native to the ERC20 network, and not the Binance Chain (BEP2).

Binance-Peg ETH should be 1:1 with ETH

For every Binance-Peg ETH that is on the Binance Smart Chain, Binance will store 1 ETH in a public address.

You can access Binance’s ‘Proof of Assets‘ page to show the amount of ETH that is being kept in the reserves for the different versions of ETH (BEP20 and BEP2).

Binance Proof Of Assets ETH

Transaction fees are lower on Binance Smart Chain compared to the ERC20 network

If you are sending and receiving ETH on the ERC20 network, the transaction fees can be quite high. However, if you choose to send ETH via the Binance Smart Chain (BEP20) or Binance Chain (BEP2), the fees are actually much lower.

Here are the transaction fees you’ll need to pay on Binance when withdrawing ETH using these different networks:

Binance ETH Withdrawal Networks

The transaction fees on BEP2 and BEP20 are much lower compared to the ERC20 network.

While it is advantageous to send Binance-Peg ETH compared to ETH, you may want to double check that the wallet or application that you’re using supports the BEP20 version of ETH.

If they do not support the BEP20 version of ETH, you should only be sending ETH to that wallet or platform. Otherwise, your funds may be lost!

How do you add the Binance-Peg Ethereum to Metamask?

To add the Binance-Peg token to your Metamask wallet, you will need to add the Binance Smart Chain (BEP20) network to your Metamask wallet first. After that, you will need to copy the Binance Smart Chain contract for Ethereum and import it as a custom token.

Binance Peg ETH Added To Metamask

You can view this video on how to add the BEP20 network to your Metamask wallet automatically with just one click:

You may want to note that you will not be able to add the Binance Chain version of Ethereum to your Metamask wallet, as Metamask does not support this network.

You can view my guide on adding ETH to the Binance Smart Chain for more information.

Can you send Binance-Peg Ethereum to Coinbase?

Coinbase does not support the Binance Smart Chain or the Binance Chain on its platform. As such, you are unable to send the Binance-Peg versions of Ethereum to Coinbase, and only the ERC20 version of ETH.

Currently, Coinbase only supports the ERC20 version of ETH, and not the Binance Chain or Binance Smart Chain versions of ETH.

If you send Binance-Peg Ethereum to your Coinbase account, there is a chance that your funds may be lost forever!

How do I convert Binance-Peg Ethereum to Ethereum?

To convert Binance-Peg Ethereum to Ethereum on the ERC20 network, you will need to send ETH to a platform that supports both ERC20 and BEP20 versions of ETH.

This is similar to how you would convert Binance-Peg ADA or BUSD back to their native tokens.

Some platforms that support both Binance-Peg Ethereum and Ethereum include:

Here are the steps you’ll need to do to convert Binance-Peg Ethereum to Ethereum:

  1. Send ETH via the BEP20 network to one of these platforms
  2. Withdraw ETH from the platform of your choice to another wallet using the ERC20 network

Since the BEP20 and ERC20 deposit addresses are the same, it depends more on the network that you are using to send ETH with.

You can check out my article on sending ETH via the BEP20 network to find out more.

Can I convert Binance-Peg Ethereum to Ethereum on Trust Wallet?

You are unable to convert Binance-Peg Ethereum to Ethereum directly on Trust Wallet. You will need to send Binance-Peg Ethereum on Trust Wallet to a platform that supports both ERC20 and BEP20 versions of ETH to do the conversion.

If you’ve sent some Binance-Peg Ethereum to your Trust Wallet, there is no way for you to change it back to Ethereum (ERC20).

While you can swap Binance-Peg Ethereum on Trust Wallet,

Binance Peg Ethereum Swap Trust Wallet

you can’t swap it directly to the ERC20 version of Ethereum.

Binance Peg ETH Swap To BNB Trust Wallet

It is possible for you to swap between the BEP20 and BEP2 versions of Ethereum, but you can’t swap them to the ERC20 version.

Can I convert Binance-Peg Ethereum to Ethereum on Metamask?

You are unable to convert Binance-Peg Ethereum to Ethereum on your Metamask wallet, as Metamask does not support inter-blockchain swaps. You will need to send ETH from Metamask to a platform that supports both ERC20 and BEP20 versions of ETH to do the conversion.

If you used the Swap feature on Metamask, you are only able to swap Binance-Peg Ethereum to another coin that is on the Binance Smart Chain.

Binance Peg Ethereum to Ethereum Metamask

As such, it is not possible to switch Binance-Peg Ethereum to Ethereum on your Metamask wallet.

How do I send Binance-Peg Ethereum to Binance?

To send Binance-Peg Ethereum to Binance, you will need to use the BEP20 or BEP2 networks to send Ethereum to Binance.

When you are sending Binance-Peg Ethereum to Binance, you will need to send it either via the BEP20 or BEP2 network.

The good thing is that Binance will aggregate the balances together, regardless of which network you use to send ETH to Binance.

Binance ETH Balance Aggregate

How do I send Binance-Peg Ethereum to Crypto.com?

To send Binance-Peg Ethereum to Crypto.com, you will need to use the BEP20 network to send Ethereum to Crypto.com.

Crypto.com only supports Binance Smart Chain deposits and not Binance Chain deposits of ETH.

This is different from BNB, where Crypto.com also supports Binance Chain deposits of BNB.

Similar to Binance Crypto.com will aggregate all the balance of ETH together, regardless of the network that you use.

Crypto.com ETH Balance

Is Binance-Peg Ethereum available on Pancakeswap?

Pancakeswap is a decentralised exchange (DEX) that operates on the Binance Smart Chain, hence you will be able to use Binance-Peg Ethereum on its platform.

The Ethereum that you are using on Pancakeswap is Binance-Peg Ethereum, and not the ERC20 version of Ethereum.

Pancakeswap Binance Peg ETH Pairs

This is because Pancakeswap operates on the Binance Smart Chain.

Is ETH a BEP20 or ERC20 token?

ETH is a native ERC20 token. However, it can exist on the Binance Smart Chain (BEP20) in the form of Binance-Peg Ethereum, where Binance will hold 1 ETH for every Binance-Peg ETH that is created.

Conclusion

Binance-Peg Ethereum allows you to use Ethereum on the Binance Smart Chain, even though its native network is the ERC20 network.

This will be useful if you want to use it on decentralised exchanges (DEXes) like Pancakeswap or BakerySwap.

Alternatively, you can trade Binance-Peg ETH on DEX aggregators like Krystal or 1inch.

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