Many traders and investors have been drawn towards the crypto industry in recent times due to the opportunity it provides for them to evade the hold of traditional financial institutions and their exorbitant charges. However, this seems to have changed with Ethereum largely due to its recent high gas fees that is pushing users towards other centralized digital asset providers like Binance.
Binance Reaps off Ethereum gas Fees Woes
It is understood that Binance suspended withdrawals for both of the ETH products; ERC-20 and Ethereum. The reason for this was reported to be a network congestion problem. The DeFi market observers, however, said that the network was running optimally, as there seems to be no issue with it.
It is no secret that the upper echelons of Binance have been extremely critical of Ethereum as they sought to push their own product, BNB, into the limelight.
The rise in the Ethereum’s gas fees has not really helped matters, even though plans are currently being made in order to mitigate these high gas fees. However, Binance has taken advantage of this, albeit unintentionally, as users are beginning to switch allegiance to other small decentralized currencies.
Users are Jumping Ship due to Exorbitant gas Fees
As users are looking to make quick profits while avoiding high service charges, it has become relatively easier for the crowd to avoid trading with the second largest crypto asset by market cap.
A report stated that Binance’s CEO, Zhao, feels that BNB’s average trading cap is well on its way to usurping ETH’s market cap. This confidence comes from the fact that BNB is now the third most traded digital asset in the crypto market.
Most users have stuck with the Binance Smart Contract because it is relatively less expensive than the alternatives that are affiliated with Ethereum. Ethereum’s current transaction fee pegs at $30 as at February 23, 2021.