Blockchain data firm Nansen’s latest release to the report According to Binance’s decentralized finance platform, Binance Smart Chain (BSC) is behind the success of not small investors, but rather large traders.
Nansen said he based his conclusion on the number of active addresses on BSC, which the company sees as “big traders”, holding substantial sums, and the values of stablecoin transactions.
Great advantage in at least $1 million stablecoin transactions
For example, in April, when the popular decentralized exchange PancakeSwap received a lot of attention, at least $1 million in stablecoin transactions on the exchange accounted for 90% of all stablecoin transactions. According to the company’s findings; In August, these ‘deep-pocketed investors’ still held 30-40% of all stablecoin transactions.
Big profits of liquidity providers…
The Nansen company also took a look at other metrics and came up with interesting findings. An investor group, which the company describes as “smart money” and includes traders who make more than $100,000 profit by providing liquidity to DeFi protocols, and companies that invest and manage cryptocurrencies, has also been found to have increased interest in BSC.
“No matter how many negative comments are made about BSC…”
The following statements were used in Nansen’s report regarding the “smart money” group:
“Smart money interaction is one of the most likely positive indicators of a particular project or protocol. Interestingly, the ‘smart money’ addresses are also on both BSC and Ethereum, despite some negative comments about BSC.”
Transaction fees were also mentioned in Nansen’s report, stating, “The gas fees in BSC are only around 10-20% of the price in Ethereum… This is what makes BSC particularly attractive to the retail investor.” it was said.
What will BSC do against Solana and Avalanche?
In the company report, the Tier 1 blockchain race is heating up day by day and BSC; It was stated that it was questioned what to do in the face of rising projects such as Solana, Avalanche and Terra, which received significant investments from many companies.
Recently, events such as “rug pull” or flash credit robberies on BSC due to vulnerabilities in DeFi protocols have caused the security system of the platform to be questioned. CEO Changpeng Zhao states that they are not responsible for the incidents caused by the vulnerabilities in the protocols, but they always work to help the victims.
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