Given the myriads of issues associated with centralized systems, especially in the finance space, quite a lot of users look to decentralized finance (DeFi), notably, Ethereum blockchain has been the platform of choice for most DeFi projects and products. They literally cornered the DeFi market. As expected, traffic on the Ethereum blockchain skyrocketed and so did the gas fees.
People wondered how a decentralized system would have same challenges as the centralized system it was meant to correct. How come Ethereum transactions fees were crazily high? Soon enough several “Ethereum Killers” began to sprout with the aim of fixing the issues Ethereum had – top of which were scalability and huge gas fees.
Binance Smart Chain (BSC) Rises
According to available data, the leading DeFi platform is Binance Smart Chain. Its growth has been nothing short of phenomenal in the past 6 months. With cheaper and faster transactions, users now have a better way to participate in the DeFi space. With the reduction in the fees of the Binance mainnet, more users are likely to flock to BSC.
BSC VS Ethereum Blockchain
Binance Smart Chain, as of the end of last month, had almost 110,000 unique active addresses relative to Ethereum’s 67,000. Its unique active addresses witnessed a monthly increase of 27% while Ethereum declined by 9%.The highest increase in unique addresses on the Ethereum blockchain was 355,726, on 4th January, 2018. For Binance Smart Chain, the highest increase in unique addresses was 6,574,010, recorded on 2nd March, 2021.
BSC’s total locked volume (TVL) stands at $9.5 billion while that of Ethereum is $47 billion. At the end of last month, Binance Smart Chain had a transaction volume of more than $700 billion, relative to Ethereum’s $181 billion. In the daily transaction category, BSC’s 40000k transactions per day still trumps that of Ethereum which stands at 1500k.