The increasing use of DeFi protocols, dApps, and applications built on top of Ethereum has overloaded the network to the point where its fees are almost unsustainable. A number of blockchains are vying to emerge as the new Ethereum killer, and CZ is rooting for BSC as the best option.
According to Cryptopotato, in a recent tweet, CZ attacked Ethereum, pointing out its Achilles heel: fees. For the man in front of Binance, only the wealthy can afford the fees to trade Ethereum:
“ETH is a network for the rich guys now, but soon those guys will be poor.”
And maybe he is right. In 2021, the average transaction cost on Ethereum has catapulted just as fast as the price of ETH, going from less than $5 on average last year to about $15 today. According to ycharts data, just four days ago, the network fees reached an ATH of roughly $40 on average.
Nonetheless, this is the price per transaction. Traders operating on DeFi or yield farming platforms have to deal with the possibility of paying $100+ for each trade they make on a daily basis.
CZ didn’t stop there. A later tweet stated that he was no longer using Ethereum. Binance is developing two projects to compete directly with the two biggest blockchains in the ecosystem.
Binance Chain was planned to enable extremely fast payments with minimum fees. It would be a direct competitor to Bitcoin because of its narrow focus on sending and receiving funds.
On the other hand, the Binance Smart Chain allows for the execution of smart contracts more efficiently and cost-effectively than Ethereum.