- Binance Smart Chain has risen in popularity as high gas prices on Ethereum has caused investors to seek opportunities elsewhere.
- After Ethereum, BSC is one of the most robust DeFi ecosystems and has gained traction from many retail users.
- A recent report suggests that large investors have also flocked to BSC as transactions on the blockchain spiked.
The Binance Smart Chain (BSC) launched in fall 2020, which enabled smart contracts for tokens on the Binance blockchain has processed ten times more transactions than Ethereum at its peak. According to a recent report, BSC has attracted large investors who contributed to its rapid expansion.
Investors seek cheaper and faster network
Blockchain data firm Nansen found that high-value traders have been behind BSC’s rapid growth, given the active addresses seen on the blockchain.
Stablecoin transactions with over $1 million in value were responsible for 90% of the total stablecoin volume in Q2 2021 when decentralized exchange PancakeSwap running on BSC witnessed a surge in activity.
Traders who have profited by over $100,000 by providing liquidity in DeFi protocols by lending out their assets have increasingly shown interest in BSC.
According to Nansen, smart money users, which the firm refers to include liquidity providers, whales and funds, could indicate possible optimistic indicators of a project or protocol. Although some have negatively looked upon Binance Smart Chain in the community, the company’s data shows that a large number of smart money addresses have participated in both Ethereum and BSC.
Despite the prevailing belief that retail investors looking for lower transaction costs being the reason behind BSC’s success, the blockchain firm’s findings suggest that large investors have been contributing to the growth of the Binance blockchain.
Due to Ethereum’s excessively high gas fees, which have also priced out retail investors, Binance Smart Chain positioned itself as an ETH competitor, offering efficient transaction times and cheaper fees.
Namsen further pointed out that BSC has processed around ten times more transactions than Ethereum in May and August 2021. PancakeSwap also surpassed Ethereum in daily transactions in April.
Binance Coin price searches for support
Binance Coin price is slowly recovering from the massive losses witnessed on September 7, which wiped out nearly 30% of its value. Currently, BNB is searching for a foothold to prevent it from falling further.
BNB is supported by the 100 twelve-hour Simple Moving Average (SMA) at $399 as it attempts to reverse the downtrend. However, alarm bells continue to ring for Binance Coin price as the token could continue to drop lower as the buyers are nowhere to be found.
The Arms Index (TRIN), which measures overall market sentiment, suggests that there are still more sellers in the market than bulls. If BNB loses the aforementioned support, Binance Coin price will discover the following line of defense at the 38.2% Fibonacci retracement level at $394 before a further decline.
BNB/USDT 12-hour chart
Should Binance Coin price continue to slide, the target for the bears is at the 200 twelve-hour SMA, which sits at $361.
Moving forward, the bulls would need to challenge the next resistance level at the August 16 high at $436 before attempting to reach the 50% Fibonacci retracement level at $451.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ethereum whales turn bullish with Shanghai upgrade less than a month away

Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit

Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?

Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?

Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?

Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.