In the DeFi race, there have been many developments including Ethereum domination, Cardan launch, Solana, an unprecedented rise, and many other appearances in this space. But the only blockchain that has truly been in competition for the dominance of Ethereum is Binance Smart Chain (BSC). And looking at the major projects on both networks, it seems that BSC could be on to something bigger.
Exactly one year ago, the market witnessed the launch of Binance Smart Chain and PancakeSwap. Since then, the two together have grown substantially.
During the year, the total locked value (TVL) of BSC increased by 138,407% from $ 12.5 million to $ 17.8 billion. At the same time, PancakeSwap’s TVL increased by 397,143,000% and today it represents more than a quarter of BSC’s TVL.
The protocol had a dominance of 30.8% in the chain. In the last 30 days alone, it attracted more than $ 2.89 million in users. Now he was heading towards him release of his very first NFT called PancakeSquad, which will be released on September 22.
However, although the network appeared to be healthy, CAKE as an asset was showing some weak signs. Its low Sharpe index was a sign that returns were not as good as might be expected.
But can BSC outperform Ethereum?
At the moment, the only determining factor for investing in CAKE is BSC’s ability to process transactions faster and cheaper than Ethereum and Uniswap. The additional lack of yield cultivation in Uniswap allows PancakeSwap to attract more users. This is why PancakeSwap has managed to change both Uniswap V2 and V3.
However, when it comes to the two blockchains, BSC falls short on the decentralization aspect due to Binance’s control. It’s more, Since the BSC and Ethereum bridges go both ways, a BSC slip-up could cause dAapp developers to move to Ethereum.
So while each has its own merits, BSC will not outperform Ethereum any time soon. However, the rise of dApps like PancakeSwap and Uniswap could make the competition between these blockchains tougher.
This is a machine translation of our English version.