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Home»Ethereum»Can BSC’s Maxwell upgrade challenge Ethereum’s DeFi dominance?
Ethereum

Can BSC’s Maxwell upgrade challenge Ethereum’s DeFi dominance?

July 1, 2025No Comments2 Mins Read
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Blockchain technology is rapidly evolving, with Layer-1 chains like BNB Chain (BSC) positioning themselves as the next Web3 powerhouse. In a recent development, BSC has taken a significant lead in raw block output, producing 115,200 blocks per day, which is 8 times more than Ethereum’s projected volume.

The Maxwell upgrade on BSC has played a pivotal role in this achievement by reducing block time from 1.5 seconds to 0.75 seconds. This enhancement aims to enhance speed, user experience, and overall throughput across the network. While Ethereum is considering a block time reduction to 6 seconds with the upcoming Glamsterdam upgrade in 2026, BSC has already implemented this change, giving it a clear edge in terms of block frequency.

With the implementation of Maxwell, BSC now generates approximately 4,800 blocks per hour, translating to 115,200 blocks per day. In comparison, even if Ethereum reduces its block time to 6 seconds, it would only produce 14,400 blocks per day. This significant difference in block output underscores BSC’s superiority in transaction throughput and settlement speed.

However, speed alone is not the sole determinant of network dominance. The real question is whether this performance gap translates into tangible gains in BSC’s on-chain activity, DeFi liquidity flows, and price momentum.

On-chain data indicates that BSC’s speed enhancements are indeed paying off, with 2.04 million active addresses compared to Ethereum’s 411,000. Additionally, BSC has witnessed a DEX volume of $7.38 billion in 24 hours, far surpassing Ethereum’s $1.44 billion. This surge in liquidity flow underscores the impact of BSC’s faster block times on driving real usage within the DeFi ecosystem.

See also  Ethereum Liquid Staking Hits New ATH With 35.5 Million ETH Locked

Despite these positive metrics, BSC still lags behind Ethereum in total value locked (TVL) and protocol revenue. This suggests that while BSC excels in user activity, Ethereum continues to attract higher capital and value in DeFi interactions.

The structural difference between BSC and Ethereum is evident – BSC is optimized for scale and speed, while Ethereum remains the preferred platform for capital-intensive, yield-bearing protocols. While the Maxwell upgrade has boosted engagement on BSC, it still falls short of Ethereum’s dominance in TVL and fee capture.

If Ethereum’s Glamsterdam upgrade successfully improves block times without compromising decentralization, it could potentially negate BSC’s speed advantage. This would further intensify the competition for DeFi relevance between the two chains, signaling an exciting evolution in the blockchain landscape.

BSCS challenge DeFi Dominance Ethereums Maxwell upgrade
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