The number of unique addresses on the Binance Smart Chain recently hit an all time high of 47.3 million. This is coming on the back of a 2,265% increment from the former ATH of 2 million set more than two weeks ago.
Recall that, since the start of 2021, the number of unique addresses on the Binance Smart Chain has witnessed an exponential rise. While it can be agreed that the numbers are a lot higher than in 2020, most of the increments have come in February 2021.
Possible Reasons For The Increase In Binance Smart Chain Addresses
The past few weeks saw the increase in the gas fees for transactions on the Ethereum blockchain. This increase in gas fees is understood to ultimately defeat the goals of decentralized financing. Therefore, users sought other alternatives to Ethereum.
It was reported about a week ago that this surge in the gas fees in Ethereum led to investors moving into the Binance Smart Chain to complete their transactions. This movement of investors has been touted as a possible reason for the exponential rise in the unique addresses of the Binance Smart Chain.
Another reason for this exponential increase could be as a result of 1inch Exchange announcing back in February that they would be deploying the 1INCH token on the Binance Smart Chain. This deployment of the 1INCH token on BSC was to allow users to utilize the BSC bridge in order to gain access to all of the Binance-based decentralized exchanges.
The result of the 1inch announcement enabled its users to gain access to StreetSwap, BurgerSwap, PancakeSwap, Venus JulSwap and other DEXes available on Binance. It is possible that these incentives allowed users of 1inch to move towards the Binance Smart Chain; thus, increasing the number of unique addresses.
Effects of The New ATH
The current ATH being experienced on the Binance platform cannot dwell independently without activity. That said, the rise in the unique addresses will certainly reflect the activities being carried out on the Binance Smart Chain. While the ATH remains at 47.3M, it is expected that the blockchain will experience a new ATH in the nearest future as more people join in.
Moreover, since an increase in users ultimately spells an increase in activities, it is expected that the value of the Binance Coin (BNB) is bound to increase in value. Currently, the value of BNB rose to its highest in February. It is important to note that this value increase came at the back of the steady increase in the number of addresses.
BNB rose from an initial value of $50 to a then ATH of over $270, before finally peaking at a highest of $349 in the past month. Coincidentally, these increments came at the back of an increase in the price of Bitcoin which rose to its then all time high of $52,000.
Chances are that the prices of BNB could set a new ATH in the future. While this is true, it is predicted that this rise is hinged on the performance of Bitcoin on the market. Should the price of Bitcoin rise to about $50,000 again, it is expected that there would be a corresponding rise in BNB.
However, if Bitcoin should enter a bearish trend, slipping down to $42,000 or lower, the value of BNB could suffer.