Binance may be looking to dominate the DeFi space, just as it has the crypto sector
The Malta-based crypto exchange has launched several products in the past few months and one wouldn’t be wrong to suspect it is aiming to transform into the Google of crypto. The recently launched Binance Smart Chain has had a positive impact so far.
The project is gaining even more propulsion amidst the surge of DeFi doppelgangers that are all attracting liquidity providers. The last few weeks have seen DeFi clones such as BakerySwap, BurgerSwap and Cream Finance all move under the wings of Binance blockchain.
Binance chief executive Changpeng Zhao took to Twitter to crow about how the new network and the exchange’s native token is almost eating Ethereum.
“#Binance Smart Chain (BSC) transaction volume is now 14% of ETH. BNB market cap is 10% of ETH. In addition to #BSC, #BNB has a native fast DEX blockchain, burn, discount fees on #Binance, and more…” his tweet read.
These figures comprehensively define the current situation with Binance Smart Chain transactions increasing to almost 140,000 at the beginning of the week. Ethereum’s, on the other hand, are circling around a million per day. It is worth noting that a huge chunk of activity is being steered by BurgerSwap, reported to have seen almost $400 million in BNB staked on the first day.
DeFi duplications are on the rise, with another clone called BakerySwap, preparing to launch having the same impact on the Binance network.
Changpeng Zhao, Binance’s CEO, labelled his actions and those of his company good-natured with a previous tweet reading, “Of course, love to see more DeFi projects migrating over, and lessen the load on ETH, and hopefully, reduce the gas fees there a little too”.
The food farming outburst has provided BNB with a massive edge as yield hunters load up to deposit in new liquidity pools. BNB posted an all-time high of $32 yesterday — an almost 30% upswing compared to the same time last week. This has, in turn, pushed its market cap to over $4 billion, which is roughly 10% of Ethereum’s as of writing.
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