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Binance Smart Chain Unique Addresses Triple in a Week as Investors Seek Cheaper Ethereum Alternatives

Summary:
Ethereum transaction fees continue to be rather expensive as the network works at a 98% capacity. This has apparently caused users to seek more efficient alternatives, and Binance Smart Chain (BSC) is becoming particularly popular.Binance Smart Chain Rising in PopularityTransaction fees on Ethereum are getting particularly high. Gas costs escalate as users flood the DeFi markets in search of high yields and the “next 100x gem on Uniswap.”This has led to the notion that DeFi is only profitable for traders with more money as the transaction fees chop away profits and make it quite challenging to get a sizeable return if users don’t invest a large sum of money. This has had its fair share of community effects, and one project that’s benefitted is the Binance Smart Chain – a network that is

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Ethereum transaction fees continue to be rather expensive as the network works at a 98% capacity. This has apparently caused users to seek more efficient alternatives, and Binance Smart Chain (BSC) is becoming particularly popular.

Binance Smart Chain Rising in Popularity

Transaction fees on Ethereum are getting particularly high. Gas costs escalate as users flood the DeFi markets in search of high yields and the “next 100x gem on Uniswap.”

This has led to the notion that DeFi is only profitable for traders with more money as the transaction fees chop away profits and make it quite challenging to get a sizeable return if users don’t invest a large sum of money. This has had its fair share of community effects, and one project that’s benefitted is the Binance Smart Chain – a network that is exploding in popularity over the past couple of months. And, perhaps, rightly so.

Transaction fees on BSC are negligently low compared to those on Ethereum. The average transaction would cost cents, and they are also settled almost instantly.

A quick look into BSCScan shows that the average Gas price on the network for February 15th is around 16.6 Gwei.

bsc_gwei_chart
Avg. Gwei Price on Binance Smart Chain. Source: BSCScan

To compare this to Ethereum, the average Gas price on February 15th was almost 180 Gwei. That’s about 12.5 times more expensive.

This has seen plenty of developers start considering the platform as an alternative, as we can already see hundreds of projects built on top of BSC.

Unique Addresses on BSC Triple in a Week

With all of the above taken under consideration, it’s perhaps not a surprise that the Binance Smart Chain has enjoyed an influx of new addresses joining the network in the past week.

In less than a week, the addresses on BSC have more than tripled – from 1.2 million on February 9th to 3.66 million on February 15th.

bsc_addresses

Still, the total number of addresses on BSC is nowhere near these on Ethereum, which is to be expected, given the fact that ETH’s network has a few-years’ lead and remains the most widely used one in the industry. Span from a different angle, though, this could also mean that BSC still has plenty of room for future growth.

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