Transaction volume on Binance’-owned public chain called Binance Smart Chain [BSC] has continued to soar higher with each passing day, In the latest development, the number reached an ATH of 102,051 transactions on the 12th of September as recorded by BSC Scan.
With this, the transaction volume reached 10% of the Ethereum network just a couple of days after launching. This was observed by CEO and Founder of Binance, CZ who tweeted,
Binance Smart Chain (#BSC) transaction volume reached 10% of ETH network a couple days after launching.
Let's help bringing down the gas fees.https://t.co/rmrxMhxJvi
— CZ Binance (@cz_binance) September 13, 2020
Diving into BSC
Binance mart Chain is essentially what the world’s largest crypto exchange calls “a sovereign smart contract blockchain delivering Ethereum Virtual Machine [EVM] compatible programmability“. It is designed to run in parallel with Binance Chain. This helps Binance Smart Chain to retain the former’s fast execution times and low transaction fees while adding Smart Contracts functionality to support compatible decentralized applications [dApps].
What led to the rise of 615% in transaction volume in just two days?
The latest surge comes days after Binance Smart Chain gained accessibility to its centralized exchange [CeFi] after panning out an integration between Binance and BSC. CZ noted that this integration is a “bridge” between DeFi and CeFi.
According to the official press release, the exec announced the creation of a seed fund worth $100 million for DeFi during The World of DeFi summit. This fund along with other initiatives from Binance aims to further support the DeFi ecosystem and solutions to bridge DeFi and CeFi ecosystems as the leading cryptocurrency exchange continued to flourishing DeFi ecosystem.
This would eventually enable users to benefit from CeFi services on Binance such as spot, margin, and futures trading, savings, DeFi Staking, DeFi Pooling, etc as well as DeFi products on BSC [such as lending, AMM, liquidity mining, yield farming, etc.] This Binance users will be able to explore DeFi elements without leaving the centralized platform. This could have potentially initiated the spike in the transaction volume on BSC.
Since venturing into DeFi in April this year, Binance has continued to roll out new products to attract customer base inclined to decentralized models. Among its wide range of products, are Launchpool and Binance Liquid Swap.