Binance Smart Chain (BSC) has been active lately in terms of activity and transaction volume, but the surge in demand is affecting its network’s performance.
Binance Smart Chain High Transactions Causes Congestion on the Network
BSC and its associated decentralized exchanges, which competes with Ethereum (ETH), is one of the biggest drivers of growth in the decentralized financial (DeFi) industry this year.
As gas prices of ETH move north again, those new to DeFi or who have smaller amounts to invest moved to the Binance-powered blockchain.
The Binance Chain community announced an increase in daily transaction volume, which has now reached a record 6 million in a tweet on April 20. It added that the jump was 20% higher than the previous day.
According to Bscan, the daily transaction volume has exceeded 8 million at the time of writing, which has doubled in the past 7 days.
The Problem of BSC Transaction Errors
The company’s CEO, Changpeng Zhao, didn’t hesitate to promote BSC as a faster, cheaper alternative to Ethereum. However, according to Binance’s largest project, PancakeSwap, the network is suffering from demand and is currently “congested”.
This post was published in response to an increasing number of users complaining about transaction errors and error messages while using DEX.
According to Bscan’s graph, BSC’s average gas limit has risen 87% in the past two weeks, although it is now nearing the highest point on the Ethereum network, and there was a sharp increase yesterday. According to the graph, the daily amount of gas used on the BSC pumped by almost 50% yesterday.
PancakeSwap is responsible for most of the network load and has witnessed a major surge in transaction activities in recent months.
According to a report by derivatives exchange Deribit, the average 24-hour trading volume of PancakeSwap exceeded Uniswap by more than $1 billion and SushiSwap by more than $2 billion for the week ending April 16.
With the 7-day moving average of the 24-hour trading volume, PancakeSwap is also ahead of its two competitors.
At the time of writing, DappRadar reported a TVL record for DEX that topped $10 billion for the first time. That’s reportedly more than $9 billion from Uniswap and $4.2 billion from SushiSwap.
CAKE and BNB Tokens Increase
The local tokens on the DEX and cryptocurrency exchanges also performed well. In today’s Asian trading session, CAKEs ATH hit $28.40. According to CoinGecko, Binance’s BNB token is recovering from a recent drop to rise almost 20% on the day hitting $582.