Two heavyweights of the crypto industry are contemplating whether Binance Smart Chain (BSC) and Solana (SOL) have the ability to overtake Ethereum as the leader in the decentralized finance (DeFi) space.
In a new episode of The Unchained podcast, Kain Warwick, founder of derivatives liquidity protocol Synthetix, and Kyle Samani, managing partner of crypto-focused investment firm Multicoin Capital, says that both BSC and Solana likely pose a significant threat to Ethereum.
Warwick says that the Binance Smart Chain is drawing users who find Ethereum’s transaction costs prohibitive.
“[BSC] probably is pulling some liquidity away, but I think it’s liquidity that right now is priced out, realistically. There’s obviously some additional incremental loss, but at the moment it’s basically people that are priced out that are using Binance Smart Chain.”
Warwick posits that Solana poses a bigger competitive risk for Ethereum compared to the Binance Smart Chain.
“I think Solana is a much larger threat to Ethereum and is something