Binance Smart Chain (BSC) has completed ten times as many transactions as Ethereum (ETH). The highest since its launch in 2020. This, according to Nansen, may be a result of whale investors referencing active addresses on the Binance blockchain.
DeFi protocols liquidity providers have indicated increased interest in BSC. Nansen feels the smart money users are an indication of a covenant.
Liquid providers, funds, and whales are among them. Numerous astute investors have shunned BSC. Nevertheless, the firm’s research shows that most smart money addresses are participating in both Ethereum and Binance Smart Chain..
Regardless, the general pattern indicates that individual investors prefer Binance due to lower transaction fees.
According to Vitalik Buterin, Ethereum’s leading developer, increased NFT in the blockchain led to more gas costs. As a result, cost inefficiencies sent individual investors away. Consequently, Binance Smart Chain provides a landing spot for them due to lower prices and fast processing times.
BSC has few validators. Therefore, greater scalability and faster transactions. Binance Smart Chain has a superior DeFi environment, trailing only Ethereum. Nonetheless, Nansen feels that high-value traders fuel Binance development.
On top of that, from May to August, BSC made ten times more trades than Ethereum. In comparison to daily trade, PancakeSwap, operating on BSC, surpassed Ethereum in April. Most stable coins rely on BSC on the DEX. DeFi ventures are more BSC than Ethereum.
PancakeSwap surpassed Uniswap to become the biggest DEX. Due to Ethereum’s high transaction fee, BSC handled 600% extra trades in that period. For instance, Ethereum took 1.5 million transactions while Binance Smart Chain had 9 million.
Nevertheless, due to BSC’s more significant degree of centralization, Buterin has attacked it. Binance coin is in recovery from the losses it experienced on September 7.
From a statistical angle, Binance Coin dropped almost 30% on September 7. Closing at $416, practically the day’s low. The other day, the coin’s value further sunk to $394.