The prices and market capitalization of tokens in the Binance Smart Chain (BSC) ecosystem are booming as the whole sector is up 135% over the past week, according to CryptoSlate’s data.
Binance Coin (BNB) is leading the charge. Just yesterday, the coin broke a new all-time high of $100 and is already trading at around $130 today—up 20% over the last 24 hours and 150% over the week.
The latest rally has pushed BNB’s market cap to nearly $20 billion, with a daily trading volume of $7 billion.
BSC-based decentralized exchange (DEX) PancakeSwap’s token CAKE follows closely with +21.75% on the day and +227% on the week. Although its market cap is much smaller—$750 million—it’s clearly getting a lot of traction lately.
XVS, the native token of money market decentralized finance (DeFi) platform Venus, also gained 277% over the past seven days, reaching a market cap of $341 million.
Ethereum fees drive users away
One of the main reasons for BSC’s meteoric rise is likely the constant growth of transaction fees on competing Ethereum. While DeFi has been growing exponentially since last summer, so did the cost of asset transfer.
According to crypto metrics platform Blockchair, the average transaction fee on Ethererum has shot up above $24 recently, making the blockchain quite expensive to use for “normal” crypto enthusiasts.
Coinciding with the surge of its ecosystem, BSC also outpaced Ethereum in terms of daily transactions today, Binance CEO Changpeng Zhao noted.
— CZ 🔶 Binance (@cz_binance) February 10, 2021
“Today is an important day. #BSC (#BinanceSmartChain) flipped Ethereum on daily transactions,” Zhao tweeted, adding, “This validates the logic that low fees attracts (sic) more users & projects. We will continue to work with the #BSC community to promote low fees (even as #BNB rises) and #build more.”
Judging by the BSC ecosystem’s growth recently, it really looks like this approach is working.
Explore the Binance Smart Chain ecosystem on CryptoSlate.