Binance Smart Chain processed ten times more transactions than Ethereum, BSC growth fueled by whales

  • 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. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Pioneer crypto to retrace briefly while altcoins go higher

Bitcoin price continues to move sideways above a crucial psychological level. As long as support holds, BTC is in no trouble, however, if it breaks lower, it will likely drag Ethereum and Ripple along with it. Although this descent is likely to play out in the short term, it may be required to start a second leg-up.

More Bitcoin News

Robinhood is banking on Dogecoin traders as dog-themed altcoins break out

The spike in dog-themed cryptocurrency prices in the ongoing bull run has contributed to a rise in overall crypto market capitalization. Analysts expect the DOGE, SHIB, and AKITA prices to climb higher with the updates in their ecosystem and social dominance. 

More Dogecoin News

Shiba Inu price to provide buy opportunity before SHIB doubles again

Shiba Inu price saw a massive up move after it broke out of its consolidation pattern on October 23. This ascent propelled SHIB to a new all-time high. As bulls overextend the rally, however, things need to cool off before another massive rally emerges. 

More Shiba Inu News

Polkadot price targets all-time highs ahead of parachains launch

Analysts remain optimistic on the Polkadot network’s parachain launch scheduled for November 2021. Though the percentage of DOT tokens staked has dropped consistently, its price continues its upward climb. 

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast