Binance Smart Chain is lagging behind the broader crypto market. For slow-moving investors who missed the latest crest, there may still be time to ride the positive market wave on BSC.
The Market Awakens
Crypto markets are enjoying a period of rejuvenation and growth, especially in Decentralized Finance (DeFi). Over the past seven days, DeFi’s market capitalization has climbed 17.2% to $106.51 billion. That growth has been mirrored with Polygon, Polkadot, and Solana rising by 16.1%, 23.6%, and 14.7%.
Over the same period, the Binance Smart Chain (BSC) ecosystem has been slightly off the pace, recording a more modest but still healthy, 9.6%. Individual investors will now have to judge whether that slower initial growth on BSC indicates that there is still some way for the ecosystem to go.
London Hard Fork
The positive growth in the market follows the implementation of Ethereum’s ‘London’ hard fork on August 5th. This latest update to Ethereum made key changes, including variable block sizes to cope with congestion on the network.
Perhaps the biggest change is contained in ‘EIP 1559’, which results in the protocol paying the base fee by burning Ethereum. This should lower transaction costs and may even make Ethereum a deflationary currency in the longer term.
“1559 is definitely the most important part of London,” Vitalik Buterin confirmed to Bloomberg News from Singapore. “The London upgrade is “proof that the Ethereum ecosystem is able to make significant changes.”
FUD’ing Hard
To counter the positive news, there has been some dismay that SEC chief Gary Gensler has requested more powers to regulate crypto. This has brought about its fair share of FUD (fear, uncertainty, and doubt) about what shape and form these additional powers might take.
As Zhu Su of Three Arrows Capital pointed out, the FUD doesn’t appear to be having much effect on the wider market.
At the same time, Binance has come under the scrutiny of numerous regulators. The company has recently had issues with the UK, Italian, Malaysian, Japanese, Thai regulators, and many more. Brian Brooks, the CEO of Binance.us, has resigned after just four months.
Therefore, the relatively more modest gains in the Binance Smart Chain ecosystem could be related to some market confusion between Binance and BSC. The crypto world is undoubtedly in flux with the London Fork, the US infrastructure bill rigmarole, among other things. Let’s see how things play out.
Source : bsc.news
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