- Binance Smart Chain has grown in popularity as the high gas prices on Ethereum have led investors to look elsewhere.
- After Ethereum, BSC is one of the most robust DeFi ecosystems and has gained prominence by many retail users.
- A recent report suggests that large investors have also flocked to BSC as transactions soared on the blockchain.
The Binance Smart Chain (BSC) launched in autumn 2020, which enabled smart contracts for tokens on the Binance blockchain, has processed ten times more transactions than Ethereum at peak times. According to a recent report, BSC has attracted large investors who have contributed to its rapid expansion.
Investors are looking for a cheaper and faster network
Blockchain data company Nansen found that high quality merchants are behind BSC’s rapid growth, given the active addresses seen on the blockchain.
Stablecoin transactions valued at over $ 1 million accounted for 90% of total stablecoin volume in the second quarter of 2021, when the decentralized exchange PancakeSwap, which ran on BSC, saw an increase in activity.
Traders who have benefited over $ 100,000 from providing liquidity in DeFi logs by loaning their assets have shown increasing interest in BSC.
According to Nansen, smart money users the company is referring to, including liquidity providers, whales, and funds, could point out possible bullish indicators for a project or protocol. Although some have rated the Binance Smart Chain negatively in the community, the company’s data shows that a large number of smart money addresses have participated in both Ethereum and BSC.
Despite the prevailing belief that retail investors looking for lower transaction costs are the reason for BSC’s success, the blockchain firm’s results suggest that major investors have contributed to the growth of the Binance blockchain.
Due to Ethereum’s excessively high gas fees, which private investors have also priced out, Binance Smart Chain positioned itself as an ETH competitor that offers efficient transaction times and lower fees.
Namsen also pointed out that BSC processed around ten times more transactions than Ethereum in May and August 2021. PancakeSwap also outperformed Ethereum in April daily transactions.
Binance Coin Price is looking for support
The price of Binance Coin is slowly recovering from the massive losses on September 7th, which wiped out almost 30% of its value. The BNB is currently looking for a foothold to prevent another fall.
The BNB is backed by the 100 Twelve Hour Simple Moving Average (SMA) at $ 399 as it tries to reverse the downtrend. However, the alarm bells continue to ring for the Binance Coin price as the token could continue to decline as buyers are nowhere to be found.
The Arms Index (TRIN), which measures general market sentiment, suggests that there are still more sellers than bulls in the market. If the BNB loses the above support, Binance Coin price will find the following line of defense at the 38.2% Fibonacci retracement level at $ 394 before falling further.
BNB / USDT 12 hour chart
Should the Binance Coin price continue to decline, the target for the bears is the twelve-hour SMA of 200, which is $ 361.
Going forward, the bulls would have to hit the next level of resistance at the 16th high.