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Binance Smart Chain: Q1 2021 Overview

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DappRadar

BSC is the most used blockchain in terms of unique active wallets averaging 105,000 in March 2021.

Binance Smart Chain (BSC) has quickly become a key player in the blockchain industry. Currently, there are 360 dapps listed on DappRadar and more set to launch in the coming months. As a result, BSC has faced record-high figures in all metrics. Furthermore, according to Google Trend worldwide data, BSC has overtaken Ethereum in regards to search volume in Q1 2021. 

Source: Google Trends

Within this overview, we will analyze the total value locked (TVL), unique active wallets, gas prices and compare leading BSC and Ethereum dapps.

Table of contents

  • Key takeaways 
  • Lower gas prices on BSC changed the game
  • BSC takes the lead in Q1 2021 
  • Comparing TVL: Ethereum vs BSC 
  • The most significant dapps
  • The road ahead

Key takeaways

  • BSC is the most used blockchain in terms of unique active wallets averaging 105,000 in March 2021.
  • Gas prices were almost 14 times lower on BSC if compared to Ethereum in 2021 Q1.
  • Although Ethereum is still leading in terms of TVL with $54 billion. BSC TVL saw 121% growth month-on-month.
  • BSC finance dapp Venus has surpassed Compound and Uniswap in terms of TVL reaching $6.3 billion at the end of Q1 2021.

Lower gas prices on BSC changed the game

Q1 2021 was an exciting quarter for the blockchain industry. Lasting Ethereum congestion issues created a need for both developers and users to look for other options and BSCs’ early nurturing and dedication to its DeFi ecosystem paid off.  

Recently, the BSC community made the network even more appealing to new users as a cost-effective and stable alternative, by lowering its gas fee from 15 Gwei to 10 Gwei to counter Binance Coin (BNB)’s price jump to over $600 in April 2021. At the end of March 2021, BSC gas fees were 14 times lower than on Ethereum.

As a result, in Q1 2021 BSC generated record-high figures. By no surprise, BSC is the most used blockchain in terms of unique active wallets right now.

BSC takes the lead in Q1 2021

According to the DappRadar Q1 industry report, in terms of key metrics, daily unique active wallets grew by 639% year-on-year from 62,000 in 2020 Q1 to more than 458,000 in 2021 Q1. BSC has led the pack with average daily unique active wallets of 105,000. In March, the chain also had the biggest increase in terms of unique active wallets by 50% month-on-month. The Ethereum and Flow blockchains generated an average of around 75,000 and 53,000 daily unique active wallets respectively. 

Meanwhile, BSC reached another important milestone in terms of its native token. The BNB token price has experienced its all-time-high in April 2021, reaching more than $600. As a result, BNB became the third-largest cryptocurrency by market capitalization.

Source: CoinGecko

Impressive achievements by BSC suggest a great future for the blockchain. On the other hand, BSC hasn’t beaten Ethereum in all metrics yet.

Comparing TVL: Ethereum vs BSC 

Although BSC generated record-high figures in all metrics, Ethereum kept its leadership in terms of total value locked (TVL) and is still the most significant blockchain within the DeFi ecosystem. 

Source: DappRadar and DeFistation.io

In terms of TVL, at the end of Q1 2021 BSC had around $20 billion whereas Ethereum TVL was 2.5 times higher around $54 billion. On the other hand, several BSC dapps have now surpassed certain prominent Ethereum dapps by TVL. For example, by the end of Q1 2021, Venus had around $6.3 billion in TVL, while Ethereum decentralized finance dapps Uniswap and Compound had $5.7 billion, and $6.1 billion in TVL respectively.

Source: DappRadar and defistation.io

Binance Smart Chain dapps are providing tough competition for the Ethereum DeFi ecosystem. Although Ethereum TVL is at least 2.5 times higher, we might witness a change in leadership in the second quarter of 2021.  

The road ahead

Besides the remarkable results of Binance in Q1 2021, it has also spread its wings by funding and investing in interesting projects like Plasma (Polkadot), Furucombo, Most Valuable Builder (MVB). Meanwhile, popular Ethereum finance dapps such as 1inch, The Graph, Alpha Finance Lab/Alpha Homora, Matcha, bZx, and 0x have recently integrated with Binance Smart Chain. 

To conclude, BSC is continuing its expansion and has already generated impressive results. The blockchain has become a leading network in terms of unique active wallets in Q1 2021. Moreover, further incentivization and an increasing number of newly deployed projects suggest Binance Smart Chain is just warming up.

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