Recently, the new “Binance Smart Chain” blockchain starring made the CEO of Binance mockery of Ethereum and its high fees.
The increasing use of decentralized financing protocols, dApps, and Ethereum-based applications have increased the load and pressure on the network, which has affected the size of the fees and made it unsustainable.
Knowing that there are many upcoming projects that aim to compete and threaten Ethereum from its throne, including the new Blockchain Binance “BSC”.
Binance and Ethereum:
In a recent tweet, “CZ” attacked the CEO of Binance Ethereum, pointing to the point that has become troublesome for many Ethereum users, which is the fee.
Ethereum is only for the rich but they will soon be poor
To an extent, he is right.
Over the course of 2021, the average cost of transactions on Ethereum rose just as quickly as the price of Ethereum, moving from less than $ 5 on average last year to around $ 11 today.
Just 4 days ago, network fees reached an all-time high of around $ 42 on average, according to ycharts data.
However, this is the price per transaction.
Dealers working on DeFi or “yield farming” platforms have to deal with the potential to pay more than $ 100 for every trade they make on a daily basis.
“CZ” did not stop there, but added in a subsequent tweet that he loves Ethereum but is no longer using it.
Blockchain Binance is designed to enable extremely fast payments with the lowest possible fees.
The old blockchain Binance will be a direct competitor to Bitcoin due to its narrow focus on sending and receiving money.
Whereas, the modern blockchain finance aims to compete directly with Ethereum as it provides smart contracts more efficiently and cost-effectively than Ethereum.
Huge competition for Ethereum:
Ethereum is the second largest digital currency after Bitcoin.
The Ethereum blockchain provides many advantages that the Bitcoin blockchain cannot perform, but with the increase in building projects on it, Ethereum has become unbearable and greatly affected, which is shown by the large fees.
What has become an open weakness for other crypto projects is any weaknesses to work on more and stand out for users to expand and take a share in smart contracts and decentralized applications.
Cardano’s project, Bolcadot, Binance is one of the main competitors for Ethereum at the moment.
Recently Cardano ranked third among the cryptocurrencies with the largest market value, leaving the digital currency BNB behind.
Ethereum has been working for some time to update its network for the Ethereum version 2.0 to make it more user-friendly by improving transaction speeds and reducing fees.
Ethereum appears to be more caught up in competition now than ever before.