Binance Smart Chain (BSC) Transaction Number Exceedes 5x Ethereum
According to experts, this was due to the growth of activity on the PancakeSwap decentralized cryptocurrency exchange. Only DEX PancakeSwap on Binance Smart Chain processed more transactions per day than the entire Ethereum network.
According to CoinDesk, BSC surpassed Ethereum in daily transaction volume and unique active wallets in Q1. This is due to the continuing rise in Ethereum fees, which prompts traders to look for alternative trading options on the Binance Smart Chain, Tron and other competing networks.
Ethereum was influenced by its own success, thanks to DeFi projects, which attracted developers and users leading to network congestion and increased commissions. In the first quarter of 2021, transactions worth $ 1.5 trillion were processed on the Ethereum blockchain. This is more than the cumulative result for the previous 7 quarters.
The average transaction fee on the Ethereum network was nearly $ 30 in April, which is significantly higher compared to the range of $ 2 to $ 4 at the end of 2020. This opened up opportunities for blockchains to fight against smart contracts for the competitors of Ethereum. With commissions 100x lower than other DeFi-enabled blockchains, BSC grows to 1M daily active users.
The difference between Binance Smart Chain and Ethereum is now more visible than ever. The daily number of transactions on the Binance blockchain has almost tripled over the past week, while Ethereum has grown by only one-eighth, as the network bandwidth is already at its limit.
The total value of collateral on the PancakeSwap exchange has grown from under $ 6 billion to almost $ 11 billion. The daily number of transactions of the decentralized exchange has grown by 300% in the last 7 days. Meanwhile, on Uniswap, the decentralized exchange on Ethereum, that figure rose by less than a third over the same period.
In recent days, the Uniswap exchange has processed a lot fewer transactions. PancakeSwap volumes now exceed Uniswap volumes on a daily basis. However, other blockchains are unlikely to come close to the popularity of Ethereum yet.
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