Binance Smart Chain (BSC) Records New ATH on Several on-Chain Metrics Against Ethereum

Prashant Jha
March 17, 2021
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Binance

Binance Smart Chain (BSC), the native blockchain of Binance Exchange has recorded several on-chain ATH against Ethereum amid surging popularity. BSC has become the go-to choice for ERC-20 traders as well as Defi traders as the growing gas fee of the Ethereum network has made it a cheaper alternative. The recent rise in popularity has propelled BSC to several new highs that include,

  • Peak ratio of BSC daily Txs to Ethereum Txs: 283%.
  • Instantaneous TPS >100.
  • The total market cap of on-chain BEP-20 tokens: $15 billion.
  • The daily volume of Binance Bridge: 10M.
  • Weekly active address reached 560k ~56% of Ethereum.

Many Defi protocols either shifted their platform to BSC or created a bridge to BSC to help users cope with the high transaction fee on the Ethereum network for the time being. As a result, BSC is currently processing more than double the transaction of its rival.

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Total Value Locked in BSC Defi Breaches $13 Billion

The total number of Defi projects listed on the BSC platform has soared to 329, while the total value of funds locked in these defi protocols has crossed the $13 billion mark. The growing popularity of BSC has also propelled its native token Binance Coin (BNB) to new highs, rising from just under $50 at the end of January and reaching a new ATH of $340 within a couple of weeks.

Ethereum network’s scalability issue has come back to haunt it from time to time, but its current gas fee problems are costing it millions worth of trade to BSC at present. The idea of proof-of-stake-based ETH 2.0 is primarily because of the growing scalability issue on the Ethereum network. Although the new ETH 2.0 promises scalability as high as centralized payment processing giants such as VISA and MasterCard, it would take another two years time for its full deployment.

Many Ethereum proponents have pointed towards the heavy centralized nature of BSC and the recent slew of rug pulls and DNS hijack of BSC-based projects did cause a scare, but until the gas fee issue is resolved on Ethereum, its alternatives would continue to gain traction.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.