- Ethereum transaction fees have surged to push DeFi projects migrate towards Binance Smart Chain
- Some advocates of Ethereum are claiming that Binance is the reason behind the surge in the gas fees
- BNB is a great alternative for users looking for lower transaction fees and sensitivity to decentralization
Ethereum transaction fees have surged as the price of the token in recent months. Following such high transaction fees, several DeFi projects are opting for alternative platforms like Tron (TRX) and Binance Coin (BNB). According to the data from CoinMarketCap, the total market capitalization of BNB has surged from $20 billion to more than $50 billion. With the surge in the market cap, the token has achieved the third position in the list of cryptocurrency by market cap.
Binance as the reason behind rising Ethereum transaction fees
The higher Ethereum transaction fees has led several DeFi users flocking towards centralized platforms. Following the migration the advocates of the Ethereum tokens are left with sour taste in their mouths. Few advocates are claiming that Binance is the reason behind the spike in the gas fees that are pushing away. Whereas, many commentators have also claimed that Binance is offering a genuine alternative to high fees. Few are urging the Ethereum development to speed up its work in transitioning to a proof-of-stake system.
According to Mable Jiang, Multicoin Capital’s principle, the decentralized financial sector is in a phase where Ethereum has become expensive. To use layer 2 solutions on the Ethereum blockchain, and the user interface of some promising layer 1 alternatives is no more great.
DeFi users are having great alternative now
Accoridng to Jiang, for projects that are suffering in the Ethereum ecosystem due to high transaction fees, it makes sense for them to tap into the new BNB ecosystem. Indeed, Binance has worked hard to build up the Binance Smart Chain (BSC) community by offering great support. At BNB battlefield, such suffering projects will be having great chances to win.
According to Jason Choi, the General Partner at The Spartan Group, this seems to be the first time when projects are having alternatives. The BNB ecosystem has potential to offer lower fees and lower sensitivity to decentralization, and how organic the volumes are on the BSC protocols is hard to explain.
However, as several projects have flocked to Binance Smart Chain, the chain is now having the dominant power. It seems like it could continue growing more for short-term while the developers of Ethereum are working on implementing a solution to reduce the transaction fees.
