“Use More Gas” Says PancakeSwap As It Slows Down Due To Binance Smart Chain (BSC) Overload
Running into data storage problems just as Ethereum has been into scaling problems.
Automated market maker (AMM) PancakeSwap is seeing a lot of activity, and with that comes the issues, as users have been reporting it being slow.
Described as a fast and cheap protocol that allows anyone to participate on BSCscan, PancakeSwap said late on Tuesday that their project isn’t slow, but “BSC is just overloaded right now.”
This, the team further tweeted, is because of the all-time high they are seeing in people using the site, transactions, and volume on Binance Smart Chain (BSC).
Use more gas.
— PancakeSwap 🥞 #BSC (@PancakeSwap) April 21, 2021
Over the last 24 hours, the AMM reported 2 million transactions compared to 1.55 million on Ethereum, said the team. “The craziest part? Looks like things are just getting started.”
If things are just getting started, as the team says, this may affect the project more and make it even slower.
In 2021, as the usage of Binance Smart Chain gained traction due to high activity on Ethereum blockchain causing congestion and high fees has led to now people reporting issues on BSC as well. ETH 1.20% Ethereum / USD ETHUSD $ 1,202.24
$14.431.20% Volume 13.36 b Change $14.43 Open $1,202.24 Circulating 121.33 m Market Cap 145.87 b 5 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 5 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 5 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022
Much like BSC advertised itself as a fast and cheaper alternative to Ethereum, now new projects are trying the same with PancakeSwap.
As derivatives platform, Deribit noted in its report last week,
“at present, PancakeSwap has much of the retail active users and attention, but this could shift as BSC runs into scaling problems with data storage just as Ethereum is running into scaling problems with the delay of EIP 1559 and the likely liquidity fragmentation that will result from Layer 2 adoption.”
In terms of TVL at $5.4 billion, PancakeSwap is the second most popular project on BSC while boasting 87k addresses.
Its native token CAKE, which has an infinite mint and burn token mechanism, is also enjoying an uptrend in tandem with the protocol usage, up 4,745% YTD, making a new ATH today at $28.50. CAKE 0.61% PancakeSwap / USD CAKEUSD $ 3.35
$0.020.61% Volume 62.67 m Change $0.02 Open $3.35 Circulating 150.5 m Market Cap 503.96 m 7 mon Cream Finance Offers the Attacker 10% of Stolen Fund as Bug Bounty on Return of Funds 9 mon DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Billion in TVL 9 mon SEC Creates A Stand-Alone Office to Conduct Investigations into Crypto and Other Digital Assets: Report
PancakeSwap’s liquidity, volume, and daily users are clearly outpacing the popular DEX Uniswap, which is not fake and very much real. This engagement comes from “a new segment of users who are less ideological and experienced than Ethereum participants.”
BSC’s overall usage is actually more skewed towards new retail participants with distinct behavior from Ethereum users.
This real and undeniable traction, according to Deribit report, “is ultimately bound to BSC, the success of which depends on managing tradeoffs between throughput and decentralization.”