Binance Smart Chain Witnesses Parabolic Growth and Outperform the Broader ETH Market

Thanks to consistent high-volume transactions on PancakeSwap, BSC activities are now experiencing parabolic growth and haven’t shown any sign of stopping.

By
Ifeanyi Egede
on
May 1, 2021
Category:
BSC News

Binance Smart Chain Still Experiencing Non-Stop Log Growth

A chart comparison between daily transactions on the Ethereum network and Binance Smart Chain (BSC) shows that BSC growth has been exponential. The network has drastically outperformed ETH.

Source

According to Etherscan and BscScan data as of April 28, 2021, Ethereum’s daily transaction volume was about 1.6 million, while that of BSC was over 7 million. A Lot of  BSC's parabolic growth can be attributed to the low fee’s experienced on the BSC alongside the explosive growth of PCS. Ethereum transaction costs (also called gas fees) are a leading reason why BSC surpassed Ethereum daily transaction volume and unique active wallets. As these gas fees rose, traders had to switch to alternatives such as BSC, Tron, and other similar blockchains. Many of these users found themselves on PancakeSwap which facilitates more than 20% of the network's transaction volume. The market cap of $CAKE, PancakeSwap's token is now over $4 billion and has risen by more than 46-fold this year alone.

What are BSC and ETH?

Ethereum is an open-source platform for writing and distributing decentralized applications. ETH is planning a transition to ETH 2.0 and as part of the plan, it has launched the serenity upgrade (the beacon chain's deposit contract). More details about this upgrade can be found here. The ETH2.0 upgrade aims to swap the actual consensus layer from proof-of-work (PoW) to proof-of-stake (PoS) as it is more energy-friendly, capital-efficient, and far more secure. It is important to keep in mind that there will be no changes to the data/application layer.

The Binance Smart Chain is also an open source platform which allows for distributing decentralized applications through smart contracts. The chain has been bootstrapped by leading centralized exchange, Binance. The network utilizes an Ethereum Virtual Machine which allows developers to easily bridge their projects. To achieve this the network implements a Proof-of-Stake-Authority (POS-A) consensus model.

It might be hard to choose BSC over ETH or vice-versa for several reasons, especially when you have a bias towards one of them. However, the facts don’t lie even if opinions differ. As time goes on, there will be more facts on which of BSC or ETH's growth will be sustainable for the long term.


      

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile crypto writer and researcher on fintech, the blockchain and emerging technologies. He has several published works online and in the print media. He loves reading, research, traveling, meeting people and football. When he is not writing, he spends time with his lovely wife and kids