Binance Plans Fee Cuts To Stay Competitive With Ethereum And Solana
Changpeng Zhao (CZ), founder of Binance, has launched a bold proposal aimed at significantly reducing gas fees on the BNB Chain. This initiative could cut costs by three to ten times, positioning BNB Chain as a formidable competitor against Solana and Ethereum in the battle of layer-one blockchains.
In Brief
- CZ proposes to reduce gas fees on BNB Chain up to 10 times their current value.
- BNB Chain is already handling over 7.2 billion transactions with an average fee of $0.0945.
- This strategy directly targets competition with Solana ($0.0035 per transaction) and Ethereum ($0.42).
- The balance still needs to be found between reduced fees and prevention of network spam.
Binance’s Strategy to Dominate the Blockchain Market
Changpeng Zhao initiated discussions around a possible reduction of gas fees on BNB Chain on May 4, 2025, during a series of exchanges with the crypto community on X (formerly Twitter).
This announcement comes at a strategic moment when BNB has just surpassed Solana in market capitalization, reaching over 104 billion dollars.
Currently, BNB Chain already offers competitive fees, with a median gas price of 1 gwei, equivalent to about $0.01 per transaction.
By comparison, Ethereum charges an average of $0.42 per transaction, while Solana maintains extremely low costs at $0.0035. CZ’s proposal would potentially make BNB Chain as affordable as Solana, while retaining the robustness and EVM compatibility that are its strengths.
The BNB ecosystem is experiencing rapid expansion, with over 68.3 million transactions processed monthly, establishing itself as the most active EVM chain.
This growth accelerated thanks to the emergence of new platforms like Four.meme, which has facilitated the creation of thousands of memecoins on the BNB blockchain.
Economic and Technological Implications of This Reduction
The reduction in gas fees could radically transform the attractiveness of BNB Chain for developers and users, but also raises significant questions regarding long-term viability.
The main challenge identified by CZ remains the balance between accessibility and protection against spam. Too drastic a fee reduction could expose the network to attacks and saturate the infrastructure.
“We need to find the right balance between very low fees and a secure blockchain“, CZ emphasized during his exchanges.
This initiative is part of a broader context where BNB is gaining institutional legitimacy, notably with the recent filing by VanEck for a BNB ETF with the US SEC.
The reduction in gas fees could propel BNB Chain to new heights within the ecosystem of top-tier blockchains. If this initiative materializes, it will strengthen the network’s appeal for both developers and end users, consolidating its position among the top three blockchain platforms.
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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.