Binance Smart Chain is just getting started
In the past 24 hours, the number of transactions happening on leading Binance Smart Chain exchange PancakeSwap has been more than the entire Ethereum network combined. According to data from BSC Scan PancakeSwap had over 2 million transactions compared to Ethereums 1.55 million in the last 24-hours.
At the same time, Binance Smart Chain reports seeing over 6 million transactions through its platform with 20% of those coming in the last 24 hours. In a tweet, Binance also stated that the five biggest contributors to the record number were PancakeSwap, Mdex, Safemoon, PancakeBunny, and Venus Protocol. PancakeSwaps 2 million transactions mean that they were responsible for lions’ share of the activity.
Two stimulating factors can be at play here. Firstly there has been a notable rush to alternative DeFi solutions such as those on BSC and Polygon. These DeFi tools can offer the same services as their Ethereum counterparts at a fraction of the cost and in many cases much quicker.
Binance Smart Chain built its DeFi ecosystem early doors and as such is benefitting now from the current bull run and thirst from new investors. Many of these investors are coming from traditional share trading backgrounds and expect low fees and lightning-fast transactions. Something Ethereum has struggled with as congestion clogs the network and keeps gas fees high.
Another reason, and one alluded to by Binance in their tweet, is Safemoon. Safemoon is a BEP-20 token listed on PancakeSwap and the latest meme coin making noise on social channels, gathering over a quarter of a million followers on Twitter in less than a month. Some are even labeling it ‘The new DOGE’. Like any good meme token, there is even a movement to have the coin delisted rumbling on Reddit. Fundamentally these meme coins are giving people with very small investment pots, in some cases below $50 a chance to invest, participate, and potentially earn.