The Binance Smart Chain (BSC) has overtake Ethereum in daily transactions. As Ethereum transaction costs increase tremendously, leaving traders to search for alternatives.
Binance CEO Changpeng Zhao stated that this is proof that the low transaction cost attracts users. Zhao stressed that Binance chain will continue to use more resources to maintain the low transaction costs.
— CZ 🔶 Binance (@cz_binance) February 10, 2021
BSC has taken over a significant percentage of Ethereum’s market share. Binance Smart Chain is barely some months old, but the daily transaction volume is rising sharply.
According to BSC scan data, the number of daily transactions rose to over 1.6 million on 9 February. The number of new addresses on BSC is also growing steadily. Since 15 October 2020, 68,395 new addresses have been added.
The first stop to explore your #DApps world
— Binance Chain Community (@BinanceChain) February 10, 2021
According to Binance’s tweet, the average transaction cost on Ethereum is $5.53 and BitInfoCharts report average ETH transaction costs of $14.10.
The network activity on Ethereum is rising, and so is Ethereum price. But these both activity increase transaction costs (gas). Such high gas fee are particularly noticeable when dealing with decentralized exchanges such as UniSwap. There are stories where a single transaction fee was above $500.
Such high gas fee are good for Ethereum miners. As ETH price reached its all time high, statistic show that on February 5, 2021, miners made $3.47 million in an hour. And these are the transaction costs, in which the block benefits are not included. TO overcome these costs ETH can use EIP-1559 as a temporary solution until ETH 2.0 is rolled out.