BSC Popular With Crypto Whales: Nansen Report

Key Takeaways

  • The latest Nansen report shows that Binance Smart Chain processed ten times more transactions than Ethereum at its peak.
  • In April, the Binance Smart Chain DEX PancakeSwap processed more transactions than the entire Ethereum network.
  • According to the report, a significant number of sophisticated investors are using both Ethereum and Binance Smart Chain.

According to a report by on-chain analytics firm Nansen, Binance Smart Chain processed ten times more transactions than Ethereum at its peak.

Cheap Transactions Attract Whales

Binance Smart Chain has attracted more than just the retail market, according to a new Nansen report.

Ethereum’s exorbitant gas fees have been pricing out retail investors with smaller wallets, making them search for investment opportunities on other chains. Binance Smart Chain is one of Ethereum’s top competitors, offering fast transaction times and cheaper fees. According to the Nansen report, Binance Smart Chain was processing roughly ten times more transactions than Ethereum in May and August of this year.

Binance Smart Chain optimizes for speed, scalability, and cross-chain interoperability, but not decentralization. This means the protocol can achieve much higher transaction throughput than Ethereum. As a result, the transaction fees are also much cheaper.  

With Ethereum gas prices reaching up to $80 for simple peer-to-peer and hundreds of dollars for more complex peer-to-contract transactions during peak periods of congestion, many users have started to look for opportunities on other networks. As Binance Smart Chain hosts arguably the most robust DeFi ecosystem after Ethereum, it’s become a popular platform of choice for many retail users. 

Nansen’s report also reveals that PancakeSwap, the largest decentralized exchange on Binance Smart Chain, surpassed Ethereum in daily transactions in April. Moreover, the report indicates that bigger investors are flocking to Binance Smart Chain. 

The data shows that roughly 7.4% of crypto funds, 45.6% of arbitrage traders, and 39.1% of large and profitable liquidity providers straddle both Binance Smart Chain and Ethereum. What’s more, stablecoin transactions worth above $1 million consistently represented 90% of the total volume traded on PancakeSwap, suggesting that whales are actively using the network alongside smaller market participants. 

With other Layer 1 protocols like Solana, Avalanche, and Fantom gaining traction, it remains to be seen how Ethereum and Binance Smart Chain will fare against the competition. 

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article