​​Too Costly Ethereum is Pushing DeFi Users Away, Fuelling BNB | Crypto Land

​​Too Costly Ethereum is Pushing DeFi Users Away, Fuelling BNB Rally.

Binance coin (BNB) is now the third-highest cryptocurrency by market capitalization after its price rose by more than 40% in 24 hours. BNB now stands at USD 270 (13:45 UTC), with the native token of the Binance exchange benefitting from the migration of DeFi users towards Binance Smart Chain (BSC).

The flocking of decentralized finance users towards a centralized platform has left Ethereum (ETH) advocates with a sour taste in their mouths, with some figures even speculating that Binance is responsible for the recent spike in Ethereum gas fees that are pushing users away.

However, other commentators have commended Binance for providing a genuine alternative to high fees, while others have urged the Ethereum development to speed up its work in transitioning to a proof-of-stake mechanism.

According to Mable Jiang, Principal at Multicoin Capital, the DeFi industry is now in a phase when ETH is expensive to use, layer 2 solutions on the Ethereum blockchain are not ready yet, and the user interface of some promising layer 1 alternatives is not great.

"For projects that are harder to stand out competitively on Ethereum, it makes sense for them to tap into this ecosystem because Binance was working hard to build up the BSC community and offering a lot of support. At this alternative battlefield they may have a better chance," she added.

Meanwhile, Jason Choi, General Partner at The Spartan Group, said that while he "can't speak to how organic the volumes on BSC protocols are," this might be the first time when users that are looking for lower fees and have lower sensitivity to decentralization have an alternative now.