Analytics

Binance Smart Chain Recap: Analytics and Analysis (02/04/2021)

Join CryptoRich in his weekly series, "BSC Recap: Analytics and Analysis," where he dives into data, graphs, and the latest projects, providing insight on the state of the BSC. 

Join me for this week's review on the Binance Smart Chain (BSC) where I will be looking at prevalent BSC data, such as growth, traffic, and other relevant statistics. On top of this, I will also be looking into some newly launched projects. This week's numbers look very promising...


Unique Addresses

This week the increase of new unique wallet addresses has leaped, with a WoW (Week over Week) growth of 13.41%; the number of unique wallet addresses has grown from 895,854 to 1,006,013, displaying phenomenal growth. The increasing number of new projects on top of the well-established ones are continuing innovation on the BSC, attracting many new users. This data shows that the BSC community is getting stronger every day. 

In contrast, the Ethereum Network has only displayed a small amount of growth over the last week; its WoW increase was only 0.89%. While the change is drastically smaller than that seen on the BSC, it still brings the total unique wallet addresses on Ethereum to a whopping 135,982,636 unique addresses. It is important to note that according to this metric, Ethereum is still 135x larger than the BSC, leaving plenty of room for growth on the BSC.


Daily Transactions

Just like last week, this week, we can report more record high on the volume, as 771,461 transactions were recorded on January 27th. Overall, the daily transaction count average was a lot higher, with an average of 680,000 daily transactions; this increased almost 94.29% compared to last week's daily transactions!

These very healthy growth numbers show that users are coming over to experience the low gas fees and fast transaction speeds here on the BSC. On the other hand, the Ethereum Network, which is still very congested, handled approximately 1.3 million transactions per day, with a growth of 8.33% compared to last week's numbers.


Gas Price, Block Times, Network Utilization and Validators

The BSC gas fees are still unchanged; 20 gwei is still sufficient for a quick transaction. This is due to the block time always being three seconds on the BSC, meaning you will never have a long wait. Typically transactions will be confirmed within the time of 3 or 4 blocks, making the transaction range between 3 to 12 seconds (from experience).

The network utilization has also grown significantly over last week, increasing by 42.12%; the network still only utilizes about 8.8% of its capacity. Again still plenty of room for growth.

The Ethereum network is incredibly congested, making it slow and (very) expensive to complete transactions. With utilization being at over 97% of its capacity, the network runs at its limits in its current form; luckily, Ethereum 2.0 aims to solve this problem in the future.

Unlike the Ethereum Network, the BSC uses validators to confirm blocks, referred to as a Proof-of-Stake (POS) system. Validators make sure the BSC network keeps running and that your transactions get approved. In return, Validators get rewarded from the tx fees that users pay.

There are still 21 active validators out of the 29 available. A validator validates about 9600 blocks per week or about 1371 per day. These validators are essential in ensuring all transactions will be confirmed, quickly and securely. Anyone can become a validator; if you want to become a validator or want more info, follow THIS link to the validator guideline by Binance. (Running a node requires some investment and technical insight)


Top Token Transfers

The top 3 tokens have not changed; $ CAKE, $TWT, and $BUSD still boast the highest number of transactions on the BSC. Other impressive climbers and newcomers are JulSwap, Kebab, BSCX, Bamboo, and Coco's tokens. Seeing a variety of new tokens in the top 20 each week is a sign that many (new) projects are getting a lot of attention from the BSC community. Please be careful when "aping" (for lack of a better term) into new projects; we have seen some destructive projects rug-pulled recently on the BSC 


New Yield Farms

Recently launched yield farm projects;

Monster Slayer     De-Fi NFT game

Tornado Finance Farming, model forked from cVault 

Crow Finance Yield Farming  with a daytime and nighttime burn mechanism system 

Poz Finance Yield farming and staking 


Some newly launched projects Rug-pulled leaving their users at a loss, always DYOR (Do Your Own Research) before jumping (aping) in. you can read about those that rug-pulled HERE

Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC, it is crucial to reference the following items, HERE and HERE.

None of our articles are advice, and all financial decisions should be made on your behalf or on behalf of a professional financial advisor.


Personal Analysis

Very optimistic, those words would be my answer if someone would ask me how I would perceive the future of the BSC. For those who disagree, the numbers don't lie. Boy oh boy, what a week, the BSC has experienced a significant influx of new users, network utilization and daily transactions at all-time highs, tons of new and existing innovation, and the list goes on. 

Okay, not all was good, we have had some bad actors rug-pulling this week, and that is why it is always essential to DYOR and be cautious with new projects. While running into new projects has proven to be very lucrative, it can also bring financial ruin even quicker. My rule of thumb is that I never put more money in than I am comfortable with losing. A better way to reduce these risks is to stick to well-known projects that have stood the test of time if you are more risk-averse.

See you in next week's recap, folks.

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