- According to Binance CEO CZ, Ethereum has become a blockchain for the rich guy due to the high fees.
- CZ’s latest tweets have shown that the boundaries are more flexible when promoting Binance’s services.
According to Binance CEO Changpeng Zhao, Ethereum has become a blockchain for the rich guys due to the high fees.
Binance CEO CZ also said that it is the moment for Binance Smart Chain to shine and take advantage of the situation.
While the use of DeFi protocols, dApps, and applications are increasingly made on top of Ethereum, it has loaded the network to the point where its fees are nearly unsustainable. Several blockchains are competing to emerge as the new Ethereum killer. CZ is rooting for BSC as the best choice.
In a recent CZ tweet, he attacked Ethereum, pointing out its Achilles heel: fees. For CZ, only the rich can afford the fees to trade Ethereum:
ETH is a network for the rich guys now, but soon those guys will be poor. 😂— CZ 🔶 Binance (@cz_binance) February 27, 2021
Throughout 2021, the average transaction cost on Ethereum has catapulted just as fast as the price of ETH (its native token), going from less than $5 on average last year to about $15 today. Just four days ago, the network fees reached an ATH of nearly $40 on average, according to ycharts data.
However, this is the price per transaction. Traders operating on DeFi or yield farming platforms have to deal with the possibility of paying $100+ for each trade they make daily.
CZ didn’t stop there. A later tweet stated he was no longer using Ethereum. Binance is progressing two projects to compete directly with the two most prominent blockchains in the ecosystem.
He also said Binance Chain could enable fast payments with the smallest fees. It would be a primary competitor to Bitcoin because of its narrow focus on transferring and receiving funds.
The rise of projects like Binance Smart Chain, Polkadot, and Cardano is a sign of the growing interest in finding a blockchain capable of replacing Ethereum. Yesterday, Cardano ranked third among cryptocurrencies with the highest market capitalization, dethroning BNB from its recently taken position.
However, Ethereum developers are working on the next version of the blockchain. Ethereum 2.0 will have several layer two implementations. According to some supporters, the new blockchain will process thousands of transactions per second — even hundreds of thousands once fully deployed, according to Vitalik Buterin.