On April 21st, PancakeSwap nearly doubled Ethereum in number of transactions.
The average number of transactions per day on the Ethereum blockchain has been over 1 million for several days, with a peak of 1.57 million on April 22nd, while on PancakeSwap alone, the number of transactions per day on peak days has always been over 1.5 million.
It is worth noting that PancakeSwap is only one of the smart contracts hosted on the Binance Smart Chain, while the Ethereum blockchain actually records all transactions in ETH and all Ethereum-based smart contracts, such as USDt.
In fact, the Ethereum blockchain is definitely limited in this respect by the use of Proof-of-Work (PoW) as a consensus algorithm, while the Binance Smart Chain (BSC) uses Proof of Staked Authority (PoSA) and therefore does not suffer from the same limitations.
The DEX PancakeSwap has also seen a lot of new developments recently, which has generated a lot of interest and transactions, so much so that in the peak days the number of transactions on the Binance Smart Chain was five times that of Ethereum.
In addition, the price of PancakeSwap’s CAKE token has risen 53% since seven days ago, with a market capitalization of almost $5.5 billion, which puts it in 26th place overall, ahead of EOS and IOTA.
The fact is that many traders and retail investors are using PancakeSwap via TrustWallet, due to the very low commissions on swaps. This is causing the usage of this DEX to skyrocket.
According to Binance, BSC recently gained 1 million daily active users, thanks to fees that are 100 times cheaper than other DeFi blockchains.
PancakeSwap “Ethereum killer”
PancakeSwap is now the largest decentralized exchange by total value locked, with over $10 billion, while BSC has a total of $64 billion worth of tokens locked.
In addition, the new version, PancakeSwap V2, was launched because the previous version did not allow for certain innovations that the development team wants to introduce.
PancakeSwap and Binance Smart Chain are emerging as real “Ethereum killers”, especially in the area of decentralized exchanges, due to the fact that Ethereum is still likely to suffer from limitations that prevent it from being able to handle huge volumes of transactions at reasonable costs for several months to come. However, when Ethereum also moves to Proof-of-Stake, BSC’s dominance may shrink, as it is not a decentralized network.