This week, transaction fees on the Ethereum blockchain grew to a level that made the decentralized applications (dapp) operating atop it practically unusable. In some cases, transferring as little as $5 across the second-largest public chain started costing as high as $300.
With no choice left, many of the dapp developers decided to run the same operations on a rivaling blockchain network, the Binance Smart Chain, a public ledger that offered to do the same tasks Ethereum does at 99 percent lesser costs. On Wednesday, the BSC blockchain processed about 2.12 million transactions compared to 1.26 million on Ethereum.
The strong shift also appeared as PancakeSwap, a UniSwap ripoff launched atop the BSC blockchain, rivaled Ethereum-based decentralized exchanges, driving a 1,000 percent-plus liquidity surge this year, accompanied by strong volumes—from $37 million on Jan. 1 to $1.68 billion on Feb. 19.
— CZ 🔶 Binance (@cz_binance) February 19, 2021 The last five days saw BNB/USD surging by more than 100 percent. Ethereum remained pressured under the $2,000-level in the same period.
— CZ 🔶 Binance (@cz_binance) February 19, 2021
The last five days saw BNB/USD surging by more than 100 percent. Ethereum remained pressured under the $2,000-level in the same period.
Corporate houses, including Tesla, MicroStrategy, Square, and Bitwise, bought billions of dollars worth of Bitcoin to diversify their balance sheets with cash alternatives. Meanwhile, billionaire investors such as Paul Tudor Jones and Stan Druckenmiller also promoted cryptocurrency as digital gold— a hedge against a depreciating US dollar.
Bitcoin hits an all-time high. Source: BTCUSD on TradingView.com