Binance Smart Chain processed ten times more transactions than Ethereum, BSC growth fueled by whales
- Binance Smart Chain gained popularity as high gas prices on Ethereum caused investors to seek opportunities elsewhere.
- After Ethereum, BSC is one of the most robust DeFi ecosystems and has gained traction with many retail users.
- A recent report suggests that large investors have also flocked to BSC as blockchain transactions have increased.
The Binance Smart Chain (BSC) launched in fall 2020, which enabled smart contracts for tokens on the Binance blockchain, processed ten times more transactions than Ethereum at its peak. According to a recent report, BSC has attracted large investors who have contributed to its rapid expansion.
Investors are looking for a cheaper and faster network
Blockchain data firm Nansen has discovered that high-value traders are driving BSC’s rapid growth, given the active addresses seen on the blockchain.
Stablecoin transactions worth over $ 1 million were responsible for 90% of total stablecoin volume in the second quarter of 2021 when the decentralized PancakeSwap exchange running on BSC saw an increase in activity.
Traders who have leveraged over $ 100,000 by providing liquidity in DeFi protocols by lending their assets have shown increasing interest in BSC.
According to Nansen, the smart money users the company refers to include liquidity providers, whales and funds, could point to possible optimistic indicators of a project or protocol. While some viewed Binance Smart Chain in the community negatively, company data shows that a large number of smart money addresses participated in both Ethereum and BSC.
Despite the widespread belief that retail investors looking for lower transaction costs are the reason for BSC’s success, the blockchain company’s findings suggest that large investors have contributed to the growth of the Binance blockchain.
Due to Ethereum’s excessively high gas fees, which also cost retail investors dearly, Binance Smart Chain has positioned itself as a competitor to ETH, offering efficient transaction times and lower fees.
Namsen further pointed out that BSC processed around ten times as many transactions as Ethereum in May and August 2021. PancakeSwap also overtook Ethereum in daily transactions in April.
Binance Coin Price Research For Help
Binance Coin’s price is slowly recovering from the massive losses seen on September 7, which wiped out nearly 30% of its value. Currently, BNB is looking for a foothold to prevent it from falling further.
BNB is supported by the 12-hour simple moving average (SMA) of 100 at $ 399 as it attempts to reverse the downtrend. However, alarm bells continue to ring for the price of Binance Coin as the token may continue to drop as buyers are nowhere to be found.
The Arms Index (TRIN), which measures general market sentiment, suggests that there are still more sellers in the market than bulls. If BNB loses the aforementioned support, Binance Coin price will uncover the next line of defense at the 38.2% Fibonacci retracement level to $ 394 before falling further.
BNB / USDT 12 hour chart
If Binance Coin’s price continues to fall, the target for bears is 200 twelve-hour SMA, which sits at $ 361.
Going forward, the bulls should challenge the next resistance level at the August 16 high at $ 436 before attempting to hit the 50% Fibonacci retracement level at $ 451.