Hello my fellow bloggers! Recently DappRadar published a new report showing Binance chain now has several times more DeFi volume than Ehtereum. Let’s dive in and investigate!
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According to the report, in February 2021 BSC generated more than $700 billion in transaction volume with decentralized finance dapps. The chain stands first in terms of unique active wallets with 108,000 in February. At the same time DeFi on Ethereum generated significantly less volume. See the chart:
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Data shows that the future of DeFi is with BSC. However, I have several questions.
Question 1: Why do we have this spike?
At the beginning of March we see a pike going through the roof. The volume just increased for 3x for a few days. I don’t remember any DeFi boom recently. The spike looks unnatural, as if somebody made transactions just to generate volume.
Question 2: 97% of traffic generated by 2 Dapps.
It is hard to fake transaction volume when it is generated by multiple Dapps. When the traffic is generated by just 2 Dapps, it is not that hard to simulate some action, especially with this level of centralization Binance chain has. According to data, Venus and Autofarm generate some insane volume:
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3 biggest Dapps on ETH generate 9 times less volume than Venus. It is hard to believe Uniswap, Compound and dYdX are nothing compared to BSC De-FI. Try to find somebody in crypto land, who don’t know what Uniswap is, but home many can tell what Autofarm is?
Question 3: BSC Dapps almost look like Ethereum duplicates.
Seriously, most of projects on Binance chain in DeFi sector are duplicates of projects on ethereum network. For some of these Dapps relatively low gas prices on BSC chain is the only advantage. And they are more used in terms of volume than the original apps on ehtereum chain? I just can’t make myself believe it.
What do you think about BSC DeFI growth? Let me know in the comments below!
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Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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