1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins
1Inch, a decentralized exchange (DEX) built on the Ethereum blockchain, has become the highest-profile project to join Binance’s new Smart Chain.
Yesterday, the exchange confirmed that it had moved to the Binance Smart Chain (BSC), marking what could be a broader move away from the leading blockchain network for decentralized finance (DeFi) protocols.
Exploring New Opportunities
In its announcement, 1Inch explained that it had successfully moved ten million 1INCH tokens (worth about $40 million) to the Smart Chain. The exchange will use the tokens as a liquidity bridge between the two competing blockchains. Adding that, they will also seed its entire ecosystem on the Smart Chain.
Speaking to industry news sources, Sergej Kunz, 1Inch’s founder, explained that the move was inspired by a necessity to escape the rising gas fees on the Ethereum blockchain; with Binance Smart Chain launching to full fanfare earlier this month, it was the perfect opportunity, and they latched on to it.
Ethereum Better Watch Out
The possible move from Ethereum isn’t a new trend. For months, industry experts – including DeFi protocol developers and analysts – have criticized the Ethereum Network for its rising gas fees ETH 3.01% Ethereum / USD ETHUSD $ 1,896.08
$57.073.01% Volume 25.4 b Change $57.07 Open $1,896.08 Circulating 121.92 m Market Cap 231.17 b 7 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 7 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 7 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 .
With transactions costing more, the blockchain has shown problems with scalability, and several developers have actively shopped for alternatives to move into.
Earlier this month, Harvest Finance, one of the largest yield farming protocols in the DeFi space, made moves to hire developers to bring the protocol to the Smart Chain. While a moderator for the community described the move as an opportunity to show the cross-chain yield farming's viability, it’s no doubt Ethereum’s problems were driving them away.
ValueDeFi, another leading protocol, confirmed on Twitter that it would also be moving away from Ethereum in the nearest future.
With the leading blockchain now in more danger of losing its crown, the Binance Smart Chain isn’t the only viable option for investors. This week, fast-rising blockchain project Chainlink launch of off-chain reporting (OCR) – a feature that will allow its blockchain oracles to aggregate data Externally and publish it to the blockchain.took a step forward as it announced the
As the company’s announcement explained, the new feature will further bolster scalability by reducing gas fees and congestion on the network. Other benefits include greater node decentralization and cost-effective node onboarding.
Ethereum is putting a lot of home on its ETH 2.0 upgrade to solve many of its problems. However, even that might not come quickly enough to prevent this exodus.