Binance Smart Chain Overwhelmed Due To High User Demand

The Binance Smart Chain (BSC) platform has seen a sharp increase in activity and trading volumes, but such a high load on the network can have its drawbacks.

BSC beckons users

Binance Smart Chain (BSC), a blockchain from cryptocurrency exchange Binance, has long and successfully challenged the Ethereum (ETH) blockchain. This year, he became one of the drivers of the development of the decentralized finance (DeFi) segment as a whole. BSC’s trading performance has shown aggressive gains, and allegations of artificially inflating volumes have never been confirmed.

Amid high gas prices on the Ethereum network, newcomers to the DeFi market or investors with only small funds choose to opt for the Binance blockchain.

According to tweetpublished on April 20 by the Binance Chain Community, daily transactions on the platform continued to grow and eventually reached a record 6 million. An increase of 20% over the previous day.

Source: Bscan.com

According to Bscan, at the time of writing, the figure is already 8 million, more than doubling in the past seven days.

Side effects for BSC

However, each barrel of honey has its own fly in the ointment. According to PancakeSwap, the largest Binance project, due to high demand from users, the BSC network is now suffering from congestion, which slows down the platform.

This tweet was posted by the PancakeSwap team in response to a growing number of customer complaints about faulty transactions and errors in their execution.

According to Bscan data, the average gas limit on BSC has increased by 87% over the past two weeks, with the sharpest jump recorded the day before.

The amount of gas used daily on the BSC platform also increased by almost 50% the day before, according to the charts.

Source: Bscan.com

PancakeSwap is primarily responsible for the increased network load. The popularity of the project has skyrocketed over the past month. According to the Deribit derivatives exchange, for the week of April 16, the average daily trading volume on PancakeSwap outpaced the same indicator for Uniswap by $ 1 + billion, and SushiSwap – by $ 2 billion.

Deribit also added that PancakeSwap’s 7-day averaged daily trading volume also outperforms these two competitors.

At the time of writing, according to DappRadar statistics, the total amount of blocked funds (TVL) on this decentralized exchange (DEX) for the first time exceeded $ 10 billion. This is also above $ 9 billion on Uniswap and $ 4.2 billion on SushiSwap.

Meanwhile, native DEX tokens are also performing well. The CAKE rate renewed its all-time high at $ 28.40 in Asia today. Binance’s BNB token is aggressively recovering from its recent plunge, reaching $ 582 on CoinGecko.

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