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 -3.90% Binance Coin / USD BNBUSD $ 322.15
-$12.56-3.90% Volume 1.36 b Change -$12.56 Open $322.15 Circulating 168.14 m Market Cap 54.16 b 2 h Ripple's Brad Garlinghouse Requests For XRP Related Documents From Binance 6 d A Shift in Momentum: Binance Yields to Regulatory Pressure, the Definition of HQ Changing for CZ Too 1 w FCA's Crackdown Hits Another One After Binance, Which Has 'Not' Seen Institutional Activity Slowdown
“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 -5.52% Ethereum / USD ETHUSD $ 2,490.18
-$137.46-5.52% Volume 23.35 b Change -$137.46 Open $2,490.18 Circulating 116.96 m Market Cap 291.24 b 57 min Zcash Founder Proposes Moving to A 'More Decentralized' & Eco-Friendly PoS as PoW Has 'Security Flaws' 2 h Ethereum Will Outperform Bitcoin As A Transition in Storing Wealth Will Happen Beyond BTC: Pantera Capital CEO 2 h Ripple's Brad Garlinghouse Requests For XRP Related Documents From Binance
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 3.48% Solana / USD SOLUSD $ 34.89
$1.213.48% Volume 477.82 m Change $1.21 Open $34.89 Circulating 272.64 m Market Cap 9.51 b 1 w Tether in 'Open Dialogue' with DOJ, says Company on Report of its Executives Being Under Probe for Bank Fraud 1 w Neon Labs Integrates Cross-Chain EVM Solution Into Solana, Bringing Ethereum Dapps to the Blockchain 2 w Solana Based Crypto Wallet Phantom Raises $9M to Scale Operations
$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 -4.45% Alpha Finance Lab / USD ALPHAUSD $ 0.65
-$0.03-4.45% Volume 40.1 m Change -$0.03 Open $0.65 Circulating 351 m Market Cap 227.52 m 3 w Over 30% of ALPHA’s Circulating Supply Is Now Being Staked & Earning 13% APY 3 w SNX Leads the DeFi Bounce as Team Focuses on Layer 2 Developments and Evolution of ETH Wrapper 4 w Hot DeFi Summer Starting? Investors Might Get Left on the Sidelines as the Market Breaks Correlation SUSHI -6.65% SushiSwap / USD SUSHIUSD $ 8.03
-$0.53-6.65% Volume 183.97 m Change -$0.53 Open $8.03 Circulating 127.24 m Market Cap 1.02 b 5 d Only 2.5% Supply Auctioned, Big Chunk Reserved to Reward Users, Explains YGG on its MISO Sale 6 d Big Institutions Are Buying ETH for the First Time, Over 25% of Supply Already Used in Smart Contracts 1 w Neon Labs Integrates Cross-Chain EVM Solution Into Solana, Bringing Ethereum Dapps to the Blockchain
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 -3.27% Cream Finance / USD CREAMUSD $ 186.74
-$6.11-3.27% Volume 8.81 m Change -$6.11 Open $186.74 Circulating 616.38 K Market Cap 115.1 m 2 w DeFi Activity Picking Up, Unique Addresses Surpasses 3 Million with Uniswap in the Lead 1 mon DeFi Protocol Cream Finance To Launch On Polygon 2 mon Binance Smart Chain (BSC) Is Feeling the Pressure of the Heightened Network Demand
“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.