BNB Chain versus Ethereum: Who is emerging victorious in the dapp competition?
Competition in the world of decentralized applications (dapps) is intensifying as developers weigh the pros and cons of Binance Smart Chain and Ethereum. Factors such as scalability and transaction costs play a crucial role in their decision-making process.
According to DappRadar, Binance Chain (BNB) currently leads the pack with 5,215 dapps and over 5.3 million unique active wallets (UAW) in the past 30 days. In comparison, Ethereum (ETH) holds the second position with 4,497 dapps and approximately 1.36 million UAWs.
Despite Ethereum’s smaller user base, its dapps volume is impressive at $115 billion, more than six times that of Binance Chain’s $17.5 billion. This highlights Ethereum’s significant developer engagement.
Former Binance Vice President, Xin Jiang, suggested that further infrastructure enhancements may not be necessary as dapps could be the next catalysts for the crypto space.
Let’s delve deeper into the performance of the dapp market, the leading blockchain platforms, and the sectors driving its growth.
The dapp market has experienced a remarkable 124% year-over-year increase in UAW, reaching 4.2 million daily UAW by the end of 2023. As of February 1, it reached a new milestone with 5.3 million daily UAW, an 18% surge from the previous month and the highest since 2022.
Breaking down the numbers by industry segments, blockchain gaming continues to dominate with a steady 1.5 million daily UAW, accounting for a 28% dominance over the entire dapp ecosystem. The decentralized finance (defi) sector remains strong with 1 million daily UAW.
However, other sectors like non-fungible tokens (NFTs) and social dapps are also experiencing growth. NFTs have seen a 4% uptick this month, reaching 697,959 daily UAW. Social dapps, driven by platforms like CARV and Dmail Network, have gained significant traction with 868,091 daily UAW, a 262% increase over the previous month.
The rise of social dapps can be attributed to concerns about data privacy breaches and online scams on centralized platforms. The acquisition of Twitter by Elon Musk triggered discontent among users, leading to a drop in monthly active users. Social dapps like Friend.tech have gained popularity as they prioritize user privacy and avoid centralized data collection for ads.
However, decentralized platforms also face challenges, such as the spread of extremist content due to the freedom and anonymity they offer.
CARV, Galxe, and Dmail Network have emerged as the leading social dapps based on total UAWs in the past 30 days. CARV and Dmail Network have experienced significant growth, while Galxe has seen a substantial decline.
Binance Smart Chain (BSC) is leading the dapp race due to its low transaction fees and high scalability. It can handle up to 45.3 transactions per second (TPS), compared to Ethereum’s current throughput of under 15 TPS. Transaction fees on Ethereum have been a persistent concern, averaging at $0.89, while BSC offers significantly lower fees at $0.15.
Choosing between BSC and Ethereum depends on the specific needs and priorities of developers and users. BSC provides an efficient and cost-effective solution for high-frequency trading and applications requiring swift transaction speeds. Ethereum, on the other hand, excels in decentralization, security, and its diverse ecosystem.
To achieve mainstream adoption, dapps must focus on improving user experience, prioritizing privacy and security measures, and expanding into new areas like social media, education, and healthcare.
The road ahead requires not only technological advancements but also educational initiatives to showcase the practical benefits of dapps in everyday life.
