The Binance Smart Chain (BSC) has surpassed Ethereum in terms of throughput. Market participants are desperately searching for alternatives as they endure the excruciating pains of paying high gas fees.
Binance CEO Changpeng Zhao stated that this occurrence is proof that its low transaction fees wooed users. Zhao stressed that the platform would continue committing more resources to maintain low transaction fees for its community.
Binance Offers Cheaper Alternative
The platform has siphoned a significant percentage of the market share from Ethereum. Binance Smart Chain is barely six months old, but it has experienced a meteoric increase in daily transaction volume.
According to data from BscScan, the number of daily transactions spiked above 1.6 million transactions as of Feb. 9, 2021. Similarly, the number of new addresses created on BSC has maintained steady growth. So far this figure has peaked at 68,395 new addresses on Oct. 15, 2020.
According to Binance’s tweet, the average transaction costs on Ethereum are around $5.53. However, this seems like a conservative number as analytics platforms like BitInfoCharts are reporting average transaction costs of around $23.
Moreover, some crypto enthusiasts have expressed concerns about the highly centralized nature of BSC:
Ethereum Gas Fee Keeps Rising
Gas fees for Ethereum have continued to see new highs as network activity skyrocket. This surge has been most prominent on decentralized exchange (DEX) platforms like Uniswap.
Consequently, Ethereum miners have enjoyed lofty proceeds, especially with ETH hitting an all-time high price of $1,836 on Feb. 10.
BeInCrypto recently reported that total miner revenue has hit an all-time high. Ethereum miners made a record $3.47 million in a single hour on Feb. 5, 2021.
A new Ethereum Improvement Proposal — EIP-1559 — appears to the interim solution to the lingering problem before ETH 2.0 fully kicks off. This new proposal aims at boosting the potential value of ETH by incentivizing fee burning.