This blog post is contributed by DappRadar
Introduction
Binance Smart Chain (BSC) went live at the end of August 2020 and represents an innovative solution to bring dapps, programmability, and interoperability to Binance Chain.
The protocol quickly became one of the most talked-about topics of 2020 and can be considered as a serious contender to Ethereum. Currently, there are 47 dapps listed on BSC tracked by DappRadar. Binance Smart Chain, with a support fund of $100M, aims to support and empower the projects building solutions that will bridge CeFi and DeFi.
In this overview, we will analyze transaction volume and daily active wallets of the dapps operating on BSC and also look closer at some of the already funded projects.
Key takeaways
● Binance Smart Chain generated more than $3 billion in transaction volume from its time of launch.
● PancakeSwap is the top dapp, generating 3,300 unique active wallets compared to top Ethereum’s DEX’s: Uniswap, SushiSwap, and Balancer.
● Fifteen projects have already been earmarked for Binance’s $100 million accelerator fund.
$3 billion and counting
Binance Smart Chain (BSC) as a protocol caught up quickly within a few months of its launch and generated approximately $3 billion in transaction volume. While still a relatively small amount compared to Ethereum’s yearly figure of $256 billion, it is close to TRON’s $3.6 billion and EOS’s $6.5 billion figures.
Within just three months of launching the top BSC dapps have already generated approximately 10,000 unique active wallets with the major contributor to that figure being PancakeSwap.
PancakeSwap competes with top-ranked Ethereum DEXs
PancakeSwap is a decentralized exchange and an automated market maker (AMM) for swapping BEP20 tokens.
As a leading dapp on BSC, PancakeSwap is responsible for approximately 3,300 daily active wallets. While the figure is still eight times lower than the top Ethereum DEX Uniswap. PancakeSwap is already generating more than other top Ethereum dapps such as SushiSwap or Balancer.
The road ahead
One major advantage for BSC is their ability and initiative to accelerate projects with a $100M funding pot. It represents a smart way to grow in an increasingly crowded market.
BSC already features a growing network and it could be argued that we are seeing a different range of dapps appearing there. Such as platforms offering derivative and predication trading, and more.
According to Binance, they have received over 180 project applications so far and fifteen projects have been greenlit. Out of which, six projects were in the first round, five in the second, and four in the third round.
There are several DeFi, NFT, game, and data query dapps already approved for the support fund. For example, JustLiquidty in the DeFi category wants to create a liquidity protocol mechanism to protect token holders from low liquidity.
In the NFT space, Bounce is a decentralized NFT auction platform that incorporates liquidity mining, governance, and staking incentives.
While other dapps, such as Bitquery and Proxima, intend to serve the data analytics community. Bitquery deals with indexes and provides a unified data interface for 20+ blockchains whilst Proxima is a fast, decentralized, highly-scalable trustless data query protocol.
Conclusions
A combination of ambitious plans and the BSC protocol having quickly gathered over 3,000 daily unique active wallets indicates that whilst still young, BSC will look to challenge Ethereum’s DeFi dominance in 2021.
The $100 million accelerator fund has given dapp developers the impetus and motivation to build projects on BSC and in turn improve its infrastructure, community strength, and overall appeal.
From the fifteen projects already approved it is clear that Binance is looking to dominate the DeFi space as well as move into the growing NFT and marketplace categories, as well as more complex logistics and data-related projects.
It’s going to be interesting to observe the type of projects that will be funded by Binance in 2021 and beyond. Expectedly, BSC has a bright future ahead in the blockchain world.
