Users of decentralized applications are increasingly choosing the Binance Smart Chain (BSC) over Ethereum, despite the higher centralization of the former. According to the DappRadar service, the PancakeSwap exchange based on BSC has been used by 46,510 unique addresses over the past 24 hours. At the same time, 40,700 addresses contacted Uniswap, a fork of which is PancakeSwap.
By the number of active users per day, the top 10 includes two more projects based on BSC: Autofarm and BakerySwap. The growth in the number of users of the latter for the week was 155%, and most other projects on BSC – from 60%. Uniswap and 1inch lost some of their clients in the same segment.
Binance Smart Chain was launched in September 2020 and has full compatibility with applications originally built for Ethereum. At the same time, BSC employs a 21-validator-based Proof of Staked Authority (PoSA) consensus mechanism, allowing it to achieve faster transaction processing and keep commissions at a few cents. For comparison, commissions on the Ethereum network yesterday rose to $ 50, and the exchange of tokens for Uniswap, even after the load has decreased, now costs more than $ 200.
Binance’s own token (BNB) has also had a positive effect from this phenomenon. In addition to paying commissions, it is used by PancakeSwap and other BSC-based services to form liquidity pools. The resulting demand recently pushed BNB to new highs above $ 300.
“Ethereum is becoming a chain for wealthy investors. Uniswap still has deep liquidity and adds new tokens before the rest, but it is not available to regular users. Unsurprisingly, Binance Smart Chain is experiencing explosive growth in these conditions, with PancakeSwap catching up with Uniswap in terms of assets. People begin to indicate preferences by abandoning some services in favor of others. They want to use DeFi, but they are not interested in paying $ 50 to exchange coins or a few hundred dollars to provide liquidity, ”said analyst Lark Davis.
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