Binance Smart Chain Reports record high DeFi Adoption
DeFi protocols on the Binance Smart Chain have reached new highs. The price of Binance coin tokens has also significantly increased.
Decentralized Finance (DeFi) protocols have significantly increased since the beginning of the year. Even though the recent months have recorded a reduction in DeFi activities, the growth of major DeFi platforms is an indication that the trend will pick up again in the future.
Ethereum has been silently suffering from slow adoption by new DeFi protocols. This results from the increasing gas fees on the platform and the slow speeds at which transactions are processed. On the other hand, Binance Smart Chain has recorded an increase in protocol activity and token value.
Some reports also show that PancakeSwap (CAKE), a decentralized exchange for BSC, has higher transactions than four decentralized exchanges on the Ethereum blockchain. CAKE traded $1.6 million in a day while Uniswap and SushiSwap traded $1.1 billion and $300 billion on the same day. This is the first time that CAKE has surpassed the two platforms in terms of transactions.
BNB records an all-time high
Binance’s native token has recorded one of its best prices this year at $620. However, this has reduced to around $605 as of the time of writing. These figures have placed the native token a step closer to achieving its all-time high price.
Binance coin is the third-largest cryptocurrency in the world in terms of market capitalization, and this has been on a steady increase in recent weeks. The coin has maintained its mark past $600 since April 29. The data also shows that the coin has been making the best recovery since the market crashed last week.
Binance’s recent news
It has not all been an excellent past month for Binance. The past week has also held some terrible news for Binance exchange and its entire blockchain network. On April 28, the Binance exchange came under scrutiny by European regulators over its stock token trading. The product sparked an investigation from regulators as to whether the tokens are securities.
If the investigation reveals that the tokens are securities, heavy fines will be imposed on the exchange. The exchange had earlier on launched tokens that would give customers more exposure to cryptocurrencies. Some tokens that were listed include Apple, MicroStrategy, and Microsoft.
However, the week has not only been bad for Binance. The exchange launched its first NFT platform on an Initial DEX Offering (IDO). The NFT was quickly sold out in less than five minutes.