BSC is rapidly capturing DEFI and NFT traffic, providing the most convenient wallet and contract migration function, and becoming the strongest competitor of ETH.
Written by: Lin Ming
ETH is stuck in a technical bottleneck. The congestion of ETH is like a collar around the neck of a tiger (DEFI). DEFI is growing rapidly, but the collar is still so small. ETH is stifling the development of DEFI.
The security and interaction of LAYER2 have been greatly questioned. Whether the EIP-1559 protocol can be implemented in July, even if it goes online, it may become a chicken rib, and ETH2.0 is even more out of reach. In the foreseeable future, ETH will still be blocked. The cheapest transaction to block UNI costs tens of dollars, not to mention complicated contract interactions. In this context, BSC is rapidly capturing DEFI and NFT traffic, providing the most convenient wallet and contract migration function, and becoming the strongest competitor of ETH. The fast-growing BSC is strongly impacting the old ETH, and the ecological battle is even more important. Constantly conquering the city, let’s introduce the ecological spring on BSC.
1. Wealth-making effect, APR comparison.
Only by creating value for users, users will continue to flow in, and VENUS and CAKE are undoubtedly the blessing machines on BSC. Aside from the huge increase in currencies, only CAKE mining is used as an example. CAKE single currency pledge income is 130% , Mainstream trading has maintained a long-term mining revenue of 20%-100%, attracting users to flock in. VENUS even provides subsidies to borrowers to exceed the loan interest rate, not to mention the high-quality gathering of reasonable wealth projects such as AUTO and BUNNY as high as 300 %+APR is out.
2. Lock-up effect, DEFI-TVL comparison.
DEFI-TVL reflects the most direct ecological comparison. ETH’s TVL has stagnated after reaching 45 billion dollars, while BSC has been advancing by leaps and bounds. It has exceeded 14 billion dollars, and the locked position accounted for more than 30% of ETH. The growth momentum is increasing. It’s coming faster and faster. In particular, the ecology on the BSC chain is still imperfect, and there is a lack of excellent self-circulating projects such as Synthetix (gaming exchange) and AMPL (algorithmic stable currency).
3. The number of transactions on the chain.
The busyness of BSC is fully crushing ETH. BSC processes 2,800,000 transactions per day, while ETH processes 1,300,000 transactions per day. On March 16, BSC reached a peak of 3,726,576. The number of active addresses for transactions on the chain has also continued to hit new highs. Last week, the number of unique addresses on BSC increased by 1,571,947, a growth rate of 2.7%, while the growth rate of ETH was only 0.87%, and the number of unique addresses of BSC has reached 143,232,559.
4. Cheap gas makes the contract seamless.
BSC is most simply understood as the higher version of ETH of TPS. High TPS can bring low gas fee. Low gas fee can not only attract users, but also promote the interaction of smart contracts. For example, APY is a simple compound interest operation, but it requires calls between multiple contracts, that is, from harvesting to trading to adding liquidity to locking liquidity. The ETH-based financial gathering project is tortured by gas. Often because gas is too expensive, they give up calling contracts between each other, but it has become the most normal operation on BSC. For example, AUTO gathers reasonable financial CAKE, which requires 13,470 compound interest operations every year, and low gas fees. This is the interaction of smart contracts to the ecology. Prosperity creates unlimited possibilities. The frequent invocation of smart contracts has become an incentive rather than a burden.
5. Large-scale ecological migration.
In addition to the original ecology of BSC, the ecology of ETH is queuing to enter BSC. The congestion of ETH makes many smart contracts unsmart. 1inch can clearly provide the best quotation, but the invocation of multiple contracts causes high gas fees, which instead makes the price advantage become Disadvantage, but using 1inch on BSC is a kind of enjoyment, almost negligible gas fee, to get the best price. We can see that 1inch captured real transactions immediately after migrating to BSC. The number of transactions and the number of transactions has exceeded ETH, and user transactions have become more dispersed, reaching 1/3 of the transaction volume on ETH. After migrating to BSC, 1inch’s pledge APR has been greatly improved. The second-level ecology of ETH, such as cream, dodo, alpha, and badger, has begun to migrate in large numbers, and the migration of the head ecology is believed to be a matter of course.
6. Ecological premium rate.
Compared with the ecology on ETH, the projects on BSC are too high-quality and cheap. For the exchange, we use the ratio of the 7-day average trading volume and market value of CAKE and UNI. CAKE is underestimated by 7.3 times. For the lending platform, we use VENUS and AAVE. Comparing the 7-day average total borrowing amount to the market value of VENUS, VENUS is underestimated by 24.7 times. We use YFI and AUTO’s 7-day average lock-up amount to compare with the market value. AUTO is underestimated by 62 times. The premium rate will make Prices continue to return, and the return of prices will promote the increase of mining APR, thereby further improving DEFI-TVL.
7. BNB’s expectations.
The listing of COINBASE, the amount of lock-up of BNB on the BSC ecosystem, and the amount of lock-up of BNB campaigning for BNB will undoubtedly greatly enhance the expectations of BNB, and the increase in BNB price will bring about an increase in the amount of ecological lock-up, just calculate the BSC node In the election, the node’s revenue comes from the BNB commission charged on the BSC chain, not from the additional issuance of BNB. The minimum threshold of the BNB node is about 250,000 BNB, and the BNB commission income can bring about 20% of the node. The income is also locked in about 6 million BNB in ​​the election. With the further rise of the BSC ecosystem, it will bring higher profits and allow more people to participate in the election.
Economic changes always bring about the replacement of the strong. The survival of the fittest is the only constant truth in nature. The ecological spring of BSC has arrived.
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