The Binance Smart Chain [BSC] is experiencing an explosive growth in the last weeks. A lot of new projects coming around mostly about DeFi, AMMs, yield aggregators etc.
Most of this growth is due to the ridiculously high gas fees on ETH right now that for some operations are more than a 100$. The BSC fees are in the range of a few cents. This being said it should be noted that BSC operate in a semi decentralized manner. Not just in terms who is electing the validators (hint the BNB holders) but also in terms of depositing and withdrawals on the chain.
The Binance Smart Chain went live on the end of August 2020.
The line chart animation is for the period Aug 29, 2020 – Feb 9, 2021.
In the period above the Ethereum blockchain had almost constant number of transactions between 1.1M to 1.3M per day.
The BSC chain started with under 100k transactions in September 2020, then increased the numbers of transactions in the range of 100k to 300k per day up until the end of January.
From the end of January 2021, the BSC network experienced a massive growth in the numbers of transaction going from around a 300k to 1.6M transactions per day on February 9, 2021 when it overtakes Ethereum in numbers of transactions.
A lot of people will argue the decentralization of the BSC network including me, but ETH is at this point out of reach of so many people. I used to say don’t make transactions on ETH under 1k USD. Now I say don’t make transactions on ETH under 10k USD. With these numbers in mind how many people can afford ETH at this moment? Its not an inclusive environment for sure. The fees are reflection of the market for sure, and there are people who don’t mind them, but also people who mind them. Another interesting thing is that without options like BSC, ETH fees might be even higher.
