Binance Smart Chain eyes major fee reduction amid rising user activity

Former Binance CEO Changpeng Zhao has proposed reducing BNB Smart Chain (BSC) gas fees. In a post on X, Zhao suggested cutting the fees by 3x or 10x.

If implemented, the move could see BSC gas fees drop to less than a penny. Presently, the BSC Scan gas tracker shows that the network charges an average of 1 gwei, worth around $0.013 to process transactions.

However, this is just the average fee, and the gas fee can change depending on the complexity of the transaction and the priority chosen by users. BitBonds data shows that fast transaction fees are currently 1.5 gwei ($0.019).

While these fees are generally low, it is possible for fees to spike, especially during periods of high network activity. Data from YCharts shows that BSC had an average fee of 24.28 gwei on February 14, 2025.

Interestingly, the highest daily average fee recorded was August 30, 2020, when the fee spiked to 305 gwei. However, this was a one-off instance that has not happened again since then.

Reactions to the proposed reduction

Meanwhile, the proposed reduction has generated a positive reaction from many in the crypto community who believe the reduction in transaction fees will be a positive development for the network.

BSC has seen increased volume recently, which is evident in its 2.26 million active addresses in the last 24 hours, according to Defillama. However, many believe reduced fees could boost DeFi activity significantly and allow it to better compete with Ethereum and Solana.

The impact of reduced fees on network activity cannot be overstated. Low fees and transaction speed are two of the major factors that drive transactions on most smart contract networks and remain one of the reasons most Ethereum users prefer Ethereum layer-2 networks to the mainnet.

Tron founder Justin Sun advocated for reducing blockchain network fees to increase activity in 2024.

He said:

“IMO, lowering fees and raising the energy cap won’t hurt TRON’s profitability. The fee cut should drive transactions to 20M+ daily in three months, expanding market share and boosting profits.”

While there is no decision yet on the rate of reduction, some people have called for the total elimination of fees. However, Zhao does not support the idea and believes it would affect network participants and could lead to spam on the network.

He said:

“Lots of spam, and also need to consider validators and builders.”

Still, not everyone sees a need for a reduction as necessary. One user noted that the fee should remain as it is, and for BSC to focus on BNB burning instead, which is good for token growth.

BNB sees slight gains as Standard Chartered forecasts the price to go 4x

Meanwhile, some users were more concerned with the value of BSC’s native cryptocurrency, BNB, noting that it needs to increase. Although the token has been one of the fair performers this year, with only a 14% decline year-to-date, some users want to see a substantial increase in its value.

Interestingly, those users may soon have their wish come true, given a recent report from Standard Chartered that predicted that BNB could rise 360% in three years.

The bank’s global head of digital assets research, Geoffrey Kendrick, said in a recent report that BNB has traded in line with Bitcoin and Ethereum since 2021. He predicted that the correlation would continue, and if that happened, BNB would be worth $2,775 by the end of 2028.

However, Kendrick acknowledges that its use case is currently limited due to the fewer developers using it compared to other native tokens. Thus, increased developer activity on BSC and Binance, which maintains its dominance as a leading blockchain, could boost BNB’s price.

The token is trading at $602 after rising 1% in the last 24 hours. It remains one of the best-performing major cap assets in the last 30 days, with an 8.67% gain.

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