The Binance Smart Chain project, which had its first trials in late May, has already made the desire to achieve a reputable position in the DeFi field.
Binance Smart Chain, which enables smart contracts in addition to its features such as speed and low transaction fees, was designed as a parallel blockchain of Binance. Despite a short period of time, experts stated that the positive effects of this project were beginning to be felt. Binance Smart Chain, whose transaction amount reaches approximately 140,000 at the beginning of the week, brings to mind the following question: Can Binance have the active position it has shown in the cryptocurrency space in the DeFi field?
This Project Will Reduce The Burden On Ethereum
Changpeng Zhao, the founder and CEO of Binance, pointed out that the transaction volume of Binance Smart Chain corresponds to 14% of Ethereum and the market value of BNB is 10% of that of Ethereum through his twitter account. The CEO had suggested in his previous tweets that the burden on Ethereum, which amounted to almost a million transactions, should be reduced with new Defi projects. The fact that Binance Smart Chain has started to reduce this burden and thus the low transaction volume is reflected as a low transaction fee to investors, is considered as an indicator that this project is already giving positive signals.
#Binance Smart Chain (BSC) transaction volume is now 14% of ETH.
BNB market cap is 10% of ETH.
— CZ Binance (@cz_binance) September 14, 2020
However, it is stated that Binance Smart Chain is popular among DeFi clones such as BakerySwap, BurgerSwap, Cream Finance. This means that investors may not be exposed to high transaction fees in Ethereum and thus more profits will be achieved with this infrastructure provided by Binance. All of these indicate that Binance can have a strong position in the DeFi area, just like in the cryptocurrency space.