Everyone in the space is aware of the Ethereum network’s expensive gas fee, causing some severe discomforts for small-scale traders. Some linked the increased fees to the new DeFi projects causing some traffic on the blockchain, thereby skyrocketing gas fees and increasing scalability problems.
Although Ethereum shared that it would create a platform with better scalability, it is yet to launch the platform leaving clients with its ETH 1.0. The network is now being used at full capacity, leading to more expensive fees, making retail investors search for a suitable alternative for their transactions. Users started noticing the new price increase as February began, with the average transaction costing $22 and above.
BSC records higher addresses as Eth gas fee skyrockets
The increased demand for DeFi projects might have contributed to these problems as many investors are looking to get higher yields on their tokens. The decentralized finance platforms are now prevalent, as Uniswap recorded $100 billion in trading volumes, making it the only DEX platform to reach that feat.
The platform’s native token is also getting very popular as it gains dominance in the blockchain industry with a market cap of over $6 billion. Presently, large-scale traders are the only ones benefitting and gaining rapidly despite the gas fee, as whales still record-high profit margins even with the expensive fees. The new challenges have made smaller traders look for other platforms to achieve their objectives.
The problem has changed some elements in the space and has tripled investors interested in Binance smart contracts. As the gas fee skyrockets, the platform records higher addresses taking an interest in its network. The Binance product continues to grow immensely popular more traders see lower profit margins.
The smart contract network charges a low transaction fee when compared to the ETH network. The platform charges cents on most transactions, and it has swift settlements. Looking at charts, BSC charges around 16 Gwei, while Ethereum charges around 180 Gwei. With the statistics, people understand that the former is far more cost-effective than the latter.
Projects soar on the BSC platform
Some experts see the BSC as a more cost-effective alternative because new projects are already being built on the platform, leading to more people exploring the opportunity. Many traders have created new BSC addresses to utilize the Binance product to enjoy better profit margins as cryptocurrencies soar in the market.
This period would help users settle many transactions without them paying more than cents for most. Statistics show that the platform has over $3 million addresses now, compared to its $1.2 million addresses it had a week ago.
Still, Ethereum holds far higher addresses, primarily because it has been in the space for longer and a preferred choice for many users. This period would allow BSC to gain more users, thereby gaining some industry dominance while creating an opportunity for growth. The platform would also get some exposure and publicity with the present situation.
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