According to Binance CEO Changpeng Zhao, Ethereum has become a blockchain for the rich due to high fees.
Binance CEO CZ also said that the moment has come for Binance Smart Chain to shine and take advantage of the situation.
While the use of DeFi protocols, dApps, and applications is increasingly being done on Ethereum, its network charges have risen to the point where they are virtually unsustainable. Several blockchains are vying to emerge as the new Ethereum killer. CZ supports BSC as the best choice.
In a recent CZ tweet, he criticized Ethereum, highlighting its weakness: fees. For CZ, only the rich can afford Ethereum trading fees:
Over the course of 2021, the average transaction cost on Ethereum has risen as fast as the price of ETH, rising from an average of $ 5 last year to about $ 15 today. Just four days ago, network charges reached an ATH of about $ 40 on average, according to Ycharts data.
However, this is the price per transaction. Traders operating on DeFi or farm platforms have to deal with the probability of paying $ 100 + for every trade they make daily.
CZ didn’t stop there. He stated in a later tweet that he is no longer using Ethereum. Binance is developing two projects to directly compete with the two most important blockchains in the ecosystem.
He also said that Binance Chain can provide fast payments with the lowest fees. It will be Bitcoin’s primary competitor due to its narrow focus on money transfer and receiving.
The rise of projects like Binance Smart Chain, Polkadot, and Cardano is a sign of growing interest in finding a blockchain that can replace Ethereum. Yesterday, Cardano ranked third among cryptocurrencies with the highest market capitalization and dropped BNB from its recent position.
However, Ethereum developers are working on the next version of the blockchain. Ethereum 2.0 will have several tier two applications. According to some supporters and Vitalik Buterin, the new blockchain will process thousands of transactions per second, or even hundreds of thousands when fully deployed.