In a recent study, the blockchain analytics platform Nansen examined user behavior on Binance Smart Chain (BSC) and identified the most intriguing patterns. BSC was created as a “parallel blockchain” to Binance Chain, providing programmability and smart contracts to developers interested in launching their tokens on the network, enabling the launch of hundreds of projects, like PancakeSwap (CAKE), Venus (XVS), Auto (AUTO), and Beefy Finance (BIFI).
While compatible with the Ethereum Virtual Machine (EVM), the blockchain “was built as a scalable infrastructure capable of handling a high number of low-cost DeFi transactions without sacrificing speed,” which benefits from the wide array of Ethereum tools and decentralized applications (dApps). At its peak, BSC had about ten times the amount of transactions as Ethereum, demonstrating an inverse relationship between gas price and transaction volume.
According to the study, Tether (USDT) is traded almost twice as often as USD Coin (USDC) and DAI combined, and far outperforms stablecoin circulation on the Ethereum network. USDT was added to the system when the Binance Bridge was launched, which allowed ERC-20 and TRC-20 cross-chain transfers. Individuals may transfer an ERC-20 USDT token on ETH to a BEP-20 USDT token on the BSC without difficulty, resulting in USDT gaining traction.
In April, PancakeSwap’s CAKE token surged over 120%, and the total daily volume of the currency flipped Ethereum. Simultaneously, stablecoin transactions valued at $1 million or more regularly accounted for over 90% of the volume transacted. While other networks are actively trying to improve transaction speeds and reduce gas costs. How will Binance Smart Chain (BSC) expand and improve its market position?