While the price of Ethereum recently surged to a new all-time high of $1,950, its gas fee on the network remains a cause for concern. The high gas fee has prompted many traders to ditch Ethereum for Binance’s native blockchain called Binance Smart Chain (BSC).
The rising popularity has helped the native token BNB gain more than 400% over the past month. Recently reaching a new ATH of $280.
BNB broke into crypto’s top five coins by market capitalization at $191 per token Thursday after gaining 13% in 24 hours. The token is needed to process transactions on BSC, similarly to Ether on Ethereum.
A further sign that more traders are beginning to switch over to BSC is that Binance Smart Chain’s trading volume is now nearly double that of Ethereum.
Value moving over to BSC reflects demand for DeFi products on the cheap. The cost to process a simple Uniswap transfer has skyrocketed well into the double digits in line with ETH’s bull run.
BSC-based PancakeSwap recently replaced Uniswap for the second spot in terms of the trading volume. The clone has seen liquidity grow 1,003% for the year to date.
Volumes have been a tad more impressive, up 2,800% from $37 million on Jan. 1 to $1.1 billion on Feb. 17. Moreover, Its native CAKE token has shot up some 6,000% since its release last fall and is now trading hands at $12.77.
Original Uniswap knockoff SushiSwap also has enjoyed increased volume and liquidity figures during the DeFi market’s second act. DEX currently is the third-largest AMM after Uniswap and PancakeSwap, respectively.
Vitalik Buterin has promised that Ethereum’s scalability issues and mounting gas fee would be resolved with ETH 2.0. However, the complete rollout of the network could take as long as two years.
This has propelled BSC to become the primary choice of traders and even DeFi protocols. In the short term, Ethereum could lose a significant portion of its market to the Binance chain.
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