Binance Smart Chain (BSC) Is Feeling the Pressure of the Heightened Network Demand
Binance Smart Chain sees a significant growth with TVL also surging past $55 bln, but it is making the nodes go out of sync. Amidst this, DeFi oracle Umbrella Network announced the shift from Ethereum to BSC.
Binance Smart Chain (BSC) continues to see increased traction, which has the total value locked on the chain surpassing $56.7 billion, as per BSCProject.
The biggest contributors to this growth are lending protocol Cream (CREAM) with $12.80 billion in TVL, another lending protocol Venus (VXS), which has $11.13 billion worth of assets in it, and AMM PancakeSwap (CAKE) amused $10.70 billion in assets.
This jump in the value locked on the BSC blockchain, which is now catching up with Ethereum’s $88.82 billion, is the result of its low fees.
Currently, the average gas price on BSC is about $0.433 while processing over 9 million transactions much higher than under 1.5 million transactions handled on the Ethereum blockchain in the past 24 hours. Meanwhile, total addresses on BSC have reached past 69 billion compared to Ethereum’s over 150 million unique addresses.
But the market has been lately noting that while fast and cheap, BSC has its own set of problems, which are not that much different from the second largest network.
“Critical infrastructure on the Binance Smart Chain Network BSC is failing to operate under the network demand. Public and private nodes are up to 30 blocks behind,” stated ChartEx on Tuesday.
This has been going on for some time; during the weekend as well, BSC nodes were out of sync, delaying the ChartEx performance for BSC.
As we reported, the popular BSC-based DeFi protocol PancakeSwap slowed down several times this year due to increased usage, which then led its team to ask users to raise the gas fees.
Also, the biggest issue with BSC, researchers argue, is its lack of decentralization as the smart contract platform only relies on 21 validators compared to Ethereum’s 125,000.
Still, with the bull run strong and the future interoperability, a new DeFi oracle Umbrella Network (UMB) shifted its base from Ethereum to BSC.
“Integrating with BSC offers Umbrella multiple advantages when compared to working on other platforms, including transaction fees that are over 90% lower than what is incurred on Ethereum,” the company said in an announcement on Monday.
Umbrella Network also signed partnerships recently with crypto exchange Huobi and Asia-based HashQuark. It further plans to work with other layer 1 platforms like Solana, Polkadot, and Avalanche. SOL 2.48% Solana / USD SOLUSD $ 140.82
$3.492.48% Volume 752.34 m Change $3.49 Open $140.82 Circulating 314.47 m Market Cap 44.28 b 2 w Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 3 w Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 4 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows DOT 3.12% Polkadot / USD DOTUSD $ 25.14
$0.783.12% Volume 687.15 m Change $0.78 Open $25.14 Circulating 987.58 m Market Cap 24.83 b 4 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows AVAX 2.18% Avalanche / USD AVAXUSD $ 86.60
$1.892.18% Volume 261.97 m Change $1.89 Open $86.60 Circulating 244.35 m Market Cap 21.16 b 2 w Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 2 w StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet 4 w Bitcoin Aims for $50k Ahead of Low-Liquidity Holiday Season as Girls Who Code Refuse to “Miss Out” on Crypto
“From our first product roadmap, we have planned to integrate into BSC, and the timing couldn’t be better, given the platform’s exploding ecosystem,” Umbrella’s Founding Partner Sam Kim said.