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DeFi Farmers Escape Ethereum to Flamingo and Binance Smart Chain
The average cost of gas on the Ethereum network has grown to $ 20
This is forcing DeFi investors to look for cheaper alternatives.
Binance Smart Chain and Flamingo Finance See Growth in Activity
Ethereum Transaction Fee Rising Forces DeFi Farmers To Look For Salvation On Flamingo And Binance Smart Chain Blockchains.
Ethereum transaction fees are rising, and this is forcing DeFi investors and profitable farmers to escape the rising gas price by choosing cheaper alternatives. As a consequence, volumes on Flamingo Finance and Binance Smart Chain platforms are showing growth.
Gas attack on DeFi-investors
Ethereum price on February 4 updated all-time highs, nearly hitting the $ 1,700 mark. In turn, this led to a new jump in gas prices. According to BitInfoCharts, the average transaction fee on the Ethereum blockchain is now around $ 20.
Accordingly, it is now completely ineffective to carry out small transactions at the first level (Layer-1) of the Ethereum blockchain. Meanwhile, most DeFi solutions work exactly at this level and directly depend directly on ETH and gas. As a result, only whales can painlessly experience the current situation..
Developer Julian Koch shared his comments on the topic on Twitter. In his opinion, the current pricing will force users and developers to migrate to other blockchains, even if they have to start from scratch..
transfer: $ 15
token swap: $ 180
more complicated contract call: $ 750
this is "crisis" levels IMO, and will seriously drive away users & developers, even if they have to build the app from scratch on another chain.
– Julian (@juliankoh) February 4, 2021
Do you think that expensive gas will lead to a massive exodus of users from the network? Ethereum? Share your opinion in the comments and join the discussion in our Telegram channel!
Binance and Flamingo are thriving
Against this backdrop, it’s no surprise that alternative DeFi platforms Binance Smart Chain (BSC) and Flamingo Finance have begun to see user flow and volume growth. This is largely due precisely to the relatively cheap cost of transactions on these blockchains..
According to BscScan, the number of unique addresses on Binance Smart Chain has exceeded 1 million. The number of daily transactions with the BEP-20 token also marked an all-time high.
1/4 1 million #BSC addresses. Milestone https://t.co/f54jzFJidw pic.twitter.com/ONDn2pY1xV
– Binance Chain Community (@BinanceChain) February 2, 2021
In addition, the token also updated a record high.As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More Binance Coin. CoinGecko said it topped $ 53 this morning in Asia.
An optimistic picture is also observed in the NEO ecosystem, which was originally conceived as “Chinese Ethereum”. Its DeFi platform Flamingo Finance is also recording an increase in activity.
Since the beginning of 2021, daily trading volumes on the platform have been growing steadily. According to Flamingo analytics statistics, in the last 24 hours its turnover amounted to more than $ 4.2 million.
Of course, this is just a drop in the bucket compared to a heavyweight like Uniswap, whose trading volumes now exceed $ 1.1 billion.However, these trends reflect the growing demand for cheaper and more cost-effective cryptocurrency transactions..
The rate of the native Flamingo FLM token has doubled since the beginning of the year and is now trading on the approaches to the recently reached all-time high of $ 0.37. NEO is slightly behind these rates, but has also grown by about 14% over the past seven days and is trading at around $ 24 at the time of writing..
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