BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher
BNB price is soaring while several DeFi projects launch flash loans, margin trading products, and more on BSC, “offering strong competition for Ethereum.”
While heightened activity on the Ethereum blockchain ends up pricing out smaller users, sending the gas fees to crazy levels, Binance Smart Chain has cut down its fees in half this week in light of growing network usage.
On Wednesday, the BSC community urged the validator to decrease the minimum gas price amidst the BNB price surging to new highs above $400 and the blockchain itself growing fast. BNB 2.68% Binance Coin / USD BNBUSD $ 500.23
$13.412.68% Volume 1.88 b Change $13.41 Open $500.23 Circulating 166.8 m Market Cap 83.44 b 2 d Over 160 Projects Are Launching on Terra by Early Next Year to 'Amplify Demand for UST' and Send it to $10 Bln, says Founder 1 w China Update: Binance, OKEx, and Gate Kicks Out CNY & Existing Users, WeChat Blocks Searches, Mining Share Goes to Zero 1 w BSC Is Back in the Game as Binance Announces $1 Billion Incentives Program to Pump the Ecosystem
“The greatest benefit of BSC rather than Ethereum network is lower transaction fees. We would like to decrease BSC gas fee for the future growth of BSC DeFi platforms,” wrote one user on the platform.
The same day the community celebrated the gas fees cutting down in half.
#BinanceSmartChain gas has been dropped to 5 Gwei.
BNB goes up, gas fees go down.
— PancakeSwap 🥞 #BSC (@PancakeSwap) April 7, 2021
The fees on the network are rising fast with the usage with the highest so far 6,031 BNB collected in fees on Monday while it was keeping under 1k BNB up until Jan.
According to Cryptofees, Binance Chain is generating about $42k in average daily fees versus $25 million by Ethereum network. ETH 6.85% Ethereum / USD ETHUSD $ 4,126.38
$282.666.85% Volume 20.07 b Change $282.66 Open $4,126.38 Circulating 118.01 m Market Cap 486.95 b 5 h Cosmos Unveils New Blockchain, Sagan, A Canary Network to Allow Developers to Run Tests And Experiments 10 h Massive Retail Demand for First Bitcoin Futures ETF Made its Debut As the 2nd Highest Traded Fund In History 1 d Interactive Brokers Launches Bitcoin, Ethereum, and Crypto Trading for RIAs in the US
Ethereum's gas fees going through the roof is one of the reasons people are shifting to BSC.
According to a recent report by Dapp Radar, Binance Smart Chain has seen “tremendous growth in the DeFi sector” by allowing users to swap tokens relatively cheaply.
BSC has overtaken Ethereum in Q1 of 2021, with the former bringing in an average of 105,000 daily active wallets compared to the latter's 75k.
“‘ETH is scaling; it's coming.” Okay, I'll be excited then, but BSC is doing 4x as many transactions as ETH today, and SOL is superior tech than ETH with a burgeoning developer community springing up,” noted trader The Crypto Dog. SOL 9.73% Solana / USD SOLUSD $ 171.71
$16.719.73% Volume 3.11 b Change $16.71 Open $171.71 Circulating 300.68 m Market Cap 51.63 b 1 d Sports Betting Platform DraftKings to Become Polygon Network Validator & Support Custom NFTs Drops in Marketplace 1 d Circle’s Stablecoin USDC Launches on Hedera Hashgraph's Network 2 d Over 160 Projects Are Launching on Terra by Early Next Year to 'Amplify Demand for UST' and Send it to $10 Bln, says Founder
$ETH is great. It's king in DeFi, ETH comes first. But it's not where the most growth and opportunity is lately.
More retail are flooding into BSC than ETH and are looking for other emerging options like Solana and Cosmos.
Do you want to make money or do you want to be right?
— The Crypto Dog📈 (@TheCryptoDog) April 3, 2021
In the meantime, the Binance Smart Chain usage has exploded this year as the market rides the bulls, DeFi protocols, and NFT.
According to BSC scan, on April 7, BSC recorded more than 4 million total transactions, up from about 350k at the beginning of the year and just a few thousand in Sept. last year.
BSC is particularly getting a lot of traction in Asia as DeFi heats up in the region. The low fees is making it an attractive alternative to Ethereum.
People will trade on Binance dot com but scared #BSC might not be decentralized.
— The Crypto Dog📈 (@TheCryptoDog) April 4, 2021
Moreover, as DeFi goes multi-chain, popular projects like Alpha Finance, SushiSwap, and others are also launching on BSC. ALPHA 2.76% Alpha Finance Lab / USD ALPHAUSD $ 1.05
$0.032.76% Volume 19.58 m Change $0.03 Open $1.05 Circulating 446.33 m Market Cap 468.12 m 1 mon DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Billion in TVL 3 mon Over 30% of ALPHA’s Circulating Supply Is Now Being Staked & Earning 13% APY 3 mon SNX Leads the DeFi Bounce as Team Focuses on Layer 2 Developments and Evolution of ETH Wrapper SUSHI 5.10% SushiSwap / USD SUSHIUSD $ 11.38
$0.585.10% Volume 254.77 m Change $0.58 Open $11.38 Circulating 127.24 m Market Cap 1.45 b 5 d Indexed Finance's NDX Is Down 92% from ATH After $16 Million Hack Sends it Crashing 2 w DeFi TVL Climbs to A New ATH, Aave Dominates After Amassing $1 Billion on Avalanche 2 w Compound Bug Puts 490k COMP at Risk to Become the Largest Fund Loss in a Smart Contract Incident
Today, Cream announced that it is bringing flash loans onto BSC and bZx is yet another one “excited” to launch Yield Farming on BSC — “the first DeFi margin trading product on BSC.” CREAM 3.02% Cream Finance / USD CREAMUSD $ 154.04
$4.653.02% Volume 7.42 m Change $4.65 Open $154.04 Circulating 616.38 K Market Cap 94.95 m 1 mon Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 1 mon DeFi Stablecoins Record a Surge in Interest Rates, Total Stablecoin Supply Grows 4x in 8 Months 1 mon Fantom Sees an Avalanche of New Activity to Hit Records, Announces Rewards to Build on the Platform
“BSC is offering strong competition for Ethereum in the DeFi ecosystem. Taking into consideration how extensively DeFi dapps are expanding to BSC, it might not take long for BSC to become a leader across all key metrics,” concluded Dapp Radar.