Binance’s CEO CZ began to criticize Ethereum. What is going on? The fact that today the use of the network created by Vitalik Buterin is very expensive.
Binance CEO Criticizes Ethereum
Growing interest in the DeFi market and Ethereum-based applications in general has led to network congestion. And so much so that the fees for sending ETH on the blockchain are very high. CZ noticed this weakness.
Binance CEO Tweet showed that he is trying to strongly promote the Binance services and at the same time hit Ethereum.
It is about a post in which CZ pointed to the Achilles’ heel of Vitalik Buterin’s project: the aforementioned fees. According to him, only wealthy users can afford Ethereum trading fees today:
ETH is now a network for rich people, but soon these guys will be poor.
ETH is a network for the rich guys now, but soon those guys will be poor. 😂
— CZ 🔶 Binance (@cz_binance) February 27, 2021
What is he talking about? The fact that in 2021 the average cost of transactions in the Ethereum network was growing as fast as the price of ETH. I’m talking about the average, which has grown from $ 5 (around last year) to around $ 15 today. According to CZ, this causes the design to cease to be functional. He himself no longer uses this blockchain.
I like ETH, I just don’t use it anymore.
– CZ 🔶 Binance (@cz_binance) February 27, 2021
Fighting the competition?
Is CZ post an attempt to fight Ethereum? Binance is developing two projects that can be considered direct competition to Vitalik’s projects.
Binance Chain is designed to enable blazing-fast payments with minimal fees. So it is, in a sense, a direct competitor of Bitcoin.
Added to this is Binance Smart Chain. This, in turn, is a blockchain that allows the implementation of smart contracts. And it does it maybe even more efficiently and economically than Ethereum.
But that’s not all. In the background we have projects such as Polkadot or Cardano, which are also trying to throw the gauntlet of Ethereum creators. All this is a sign of the growing interest in the smart contracts market, and the fruit of the search for a platform that would be able to replace the Buterina project.
The “killer” of ETH has been around for a long time, but as you can see, even when he shows up, he usually has a blunt knife. The more so because Ethereum developers are working on the second version of the blockchain. Ethereum 2.0 will have several layer number 2 implementations, which project enthusiasts say will enable it to process thousands of transactions per second. Almost within days, ETH problems can be solved with Optimism, which we wrote about in more detail here.