Binance Smart Chain (BSC) Is Gradually Changing DeFi On-Ramp Dynamics

Binance, the leading crypto exchange, is gradually challenging the DeFi space with its newly launched Binance Smart Chain (BSC) and yield farming launch pool. BSC was launched at the beginning of this month as the CZ headed crypto exchange looks to onboard more people to the DeFi world. It has since gained traction despite strong criticisms at its debut; latest stats show that the transactional volume on Binance Smart Chain (BSC) is 14% of ETH while the platform’s native token ‘BNB’ market cap is 10% of ETH.

In a recent tweet, the CEO of Binance, Chao Zhao, welcomed more DApp developers to leverage BSC given it is Ethereum compatible.

According to CZ, high transaction fees and congestion on Ethereum will only make users flee projects built on the platform as opposed to mainstream adoption.

“If you are a DApp developer, do you think you will get more or fewer users/adoption when the transactions fees are 20x higher? #BNB100% EVM compatible, no extra work – for developers 20x lower fees, no congestion – for your users.”

CZ has, however, stressed in the past that BSC is not a competitor of Ethereum but an avenue to scale DeFi on-ramping. So far, the Binance launch pool features BNB, BUSD, and ARPA as the digital assets where users can earn income from staking within BSC.

The latest innovations by Binance are now disputing what most thought would be a short-lived future for centralized crypto exchanges when the Uniswap DEX came up. With Binance ahead of the pack, CZ had expressed confidence in an earlier tweet where he noted that ‘CeFi is about to give DeFi a run for its money.’ Well, a conclusive review of the progress would be a bit too early. Still, it seems the Binance founder might have hinted the future of DeFi adoption with the introduction of ‘CeDeFi.’

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Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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