Binance-native blockchain BNB Chain continued to show steady activity growth
Rebeca Moen Feb 07, 2023 10:26
Despite the bad market, Messari researchers found that BNB Chain fundamentals and on-chain activities improved in Q4 2022.
According to new study, the native Binance blockchain known as BNB Chain continues to demonstrate consistent rise in activity during the fourth quarter of 2018, despite the larger bear market in the cryptocurrency industry.
James Trautman, a researcher for Messari, stated on February 5 that the Binance network has proceeded with a "aggressive plan to deploy financial and human resources throughout its ecosystem" in a paper titled "State of BNB Chain Q4 2022," which was released on February 5.
The study said that because of these continual improvements and innovations, the average number of daily active addresses and transactions "bucked a decreasing trend and climbed by 30 percent and 0.2 percent, respectively."
Bear markets are often characterised by low levels of on-chain activity; yet, this is an ideal moment for teams to continue working on the construction and development of their goods.
Although 2022 was a turbulent year for the cryptocurrency sector, Trautman said that BNB Chain "played true to its Build N' Build moniker with network improvements and ecosystem development that demonstrated remarkable strength through Q4."
Since the middle of August, BscScan says that the number of daily transactions on BNB Chain has remained relatively unchanged at about 3 million. On the other hand, this year has witnessed a surge in the volume of daily BEP-20 token transfers, which reached just over 5 million on February 5 after a 66% increase from the previous year.
According to BscScan, the number of unique BNB Smart Chain addresses has just surpassed the previous record high of 250 million. The number of average new unique addresses added each day increased by 41.3% year on year.
Messari believes that the adoption of a number of ecosystem protocols, such as the Web3 onboarding protocol Hooked, a spike of DeFi activity on Venus Protocol, and increasing NFT activity on the OpenSea marketplace, are responsible for the expansion.
According to DeFiLlama, the total value of BNB Chain DeFi has climbed by 25% since the beginning of the year to reach $6.62 billion. This information is presented in the context of the previous sentence.
"BNB Chain was successful in implementing a growth plan, which paved the way for major advances toward acceptance. According to Trautman, it made a number of modifications to its basic functionality, merged with key partners, and expanded into DeFi, NFTs, GameFi, and other areas.
The decline in financial performance came about despite the fact that the number of active users increased. It was noticed that the average transaction fees went down, which led to a fall in the amount of money generated.
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