1inch Dex Aggregator Bridges to Binance Smart Chain

Bullish crypto news like migration, cross-chain interoperability, bridging, and expansion like that of 1inch should be seen as a collaboration towards the growth and increasing adoption of De-Fi.

By
Wilfred Victor
on
February 26, 2021
Category:
Breaking News


A few hours ago, 1inch dex aggregator built initially on the Ethereum blockchain, announced its expansion to the Binance blockchain. This comes as a piece of big news to the Binance Chain community and the entire crypto community. It points to an essential aspect of the De-Fis market’s rising star, the Binance Smart Chain (BSC) network, and its widespread platform adoption.

Binance Smart Chain - Beginner Friendly De-Fi

DeFi got its popularity and present widespread adoption on the Ethereum blockchain, which started in the fall of August 2020. “Blue-chip” De-Fi projects like Compound, Aave and Maker Dao saw their tokens rising to all new highs. Currently, DeFi is most developed on the Ethereum blockchain, which retains its number 1 spot in the world as an infrastructure-based blockchain. On top of this, ETH is the number two blockchain project in terms of market capitalization and volume.

Source

This DeFi boom has seen a new peak in Total Value Locked (TVL) at $43.8 Billion a few days ago. This new rise didn’t come without its corresponding bottlenecks for the blockchain powering the assets. Ethereum users started facing hiked gas fees as the difficulty of transacting on the network became high. Without switching to high prices, users’ funds and transactions get stuck and, in most cases, get invalidated. As most traders experience the increasing difficulty caused by high fees and network congestions, there becomes a need to use a better and even faster alternative.


1inch Dex protocol

Outside the infrastructure powering its movement, DeFi got most of its relevance from Dex protocols, where pretty much all of the Defi actions take place. The Dex protocols’ high point was that users do not have to go through the hassles of a centralized exchange order book to get their business done. Wallet to market pair, wallet to liquidity, wallet to wallet interactions, fast, simple, and straightforward.

1inch is a Dex aggregator that works out the best crypto price across decentralized exchanges. The platform launched its governance token 1INCH in December 2020 and currently boasts of a volume of $181 million. The aggregator supports multiple market listings and pairings, rapidly growing popularity next to Uniswap, an Eth-based Dex platform. Today, 1inch makes the list of Eth-based platforms making the migration to BSC.


1inch On The Binance Smart Chain

The highlight feature of the 1inch protocol is its ability to work out the best crypto prices for its users. Moving further the team has created a bridge to achieve the best price through avoiding fees. The Dex announced its expansion into the BSC network in a Twitter thread from its Official handle as well as an official Medium post

This bridge creates the opportunity for users to switch between Ethereum and Binance protocols with ease. All features of 1inch Liquidity Protocol, 1inch Aggregation Protocol, and $1INCH staking have become available to BSC users by this move. Furthermore, 1inch users will access liquidity from PancakeSwap, BurgerSwap, BakerySwap, and other BSC-based Dexes.


Users and Market Response

The news release has been met with a lot of positive response from Twitter users:

Many users expressed enthusiasm and a sense of relief from the high gas fees of the Ethereum protocol. Based on the price action on the chart as seen on 1hr timeframe and the D1 timeframe, the market is reacting nicely since the news release:

The CoinMarkeCap feed shows the price has gained an impressive 21.46% overall;

The price data presented shows a positive rally, which signifies a bullish run as a reaction to its expansion into the Binance Smart Chain network.


About Binance Smart Chain (BSC)

Launched in 2019, Binance Smart Chain is a blockchain platform developed by popular centralized cryptocurrency exchange Binance. Initially, it was launched to support the decentralized exchange Binance Dex. It has since expanded its scope to accommodate the growing number of developers migrating from Ethereum to use the protocol. It is gaining massive relevance, usability, and adoption due to its relatively fair gas price and speed. This has resulted in a record-breaking price of $349 per coin for its native BNB coin.


In Conclusion 

The effort between Binance Smart Chain and Ethereum blockchain protocols should be seen as collaborative instead of competitive. Both platforms’ users seem to be locking horns these past days under Binance CEO’s tweets. Ironically, BSC offers smart contract functionality and compatibility with Ethereum Virtual Machine (EVM). The design is to keep the Binance broadband network intact while enabling interaction with smart contracts. The two blockchains work side by side, so starting a platform war becomes unnecessary.

Bullish crypto news like migration, cross-chain interoperability, bridging, and expansion like that of 1inch  should be seen as a collaboration towards the growth and increasing adoption of De-Fi. In contrast, many see it as a competition or a means to start a Tweet war. Together, the crypto community wins.


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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.