TL;DR Breakdown
- High gas fees on Ethereum pushes investors to centralized alternatives.
- DeFi newcomers seem undisturbed by centralization concerns.
High gas fees on Ethereum push investors away
Many investors opted for decentralized finance because of its incredible features and to get away from the centralized settings. One of the attributes of DeFi that seemed attractive was the seemingly low fees on most platforms. However, the high gas fees on Ethereum seems to be wiping out investors profits, thus making DeFi less appealing to them.
Right now, traders on Ethereum are moving to centralized alternatives such as the Binance Smart Chain. Therefore, the Rekt Blog decided to examine the situation comprehensively. The blog revealed its findings by raising thoughtful questions which has stirred concerns, such as “What’s being planned behind the closed doors at Binance?”
Some days back, Binance suspended the withdrawals of the second largest crypto asset tokens while claiming congestion issues as the cause. In contrast, many experts called their bluff, revealing that there was nothing wrong with the exchange. Also, the Binance CEO has never been secretive about his criticism of the asset, which in turn, has increased the popularity of BSC.
DeFi newcomers seem undisturbed by centralization concerns
According to the report, newcomers prefer the Binance Smart Chain due to its accessibility and lower transaction costs. Right now, the average cost of transaction on Ethereum has increased to over $30. Nevertheless, many newbies seem undisturbed about centralization, unlike the long-term users of decentralized networks.
The second largest crypto asset by market cap has now become less likeable and many crypto traders are looking for centralized alternatives. Unless the scalability issue of Ethereum is solved, the gas fees will keep surging. As a result, many more investors, especially newbies, will prefer to settle for better alternatives such as Binance. There is no doubt that the high gas fees on Ethereum has increased the popularity of the BSC.
