New research shows that activity in Binance’s native Binance blockchain, also known as BNB Chain continued to increase despite the bigger bear market in the cryptocurrency sector.
James Trautman, Messari’s researcher, stated that the Binance Network has implemented an “aggressive approach to deploy financial and other resources throughout its ecosystem” (February 5, 2012), in a paper called “State BNB Chain Q4 2022” which was published on February 5.
According to the study, this is because of these innovations and continual improvements, the average daily transaction and active addresses have “bucked a declining trend” and increased by 30% and 0.2 percent, respectively.
Bear markets often have low on-chain activity. However, this is a great time for teams to continue their work on the development and construction of their goods.
Trautman stated that 2022 was a volatile year in the cryptocurrency sector. However, BNB Chain “played true” to its Build N’ Build moniker with network improvement and ecosystem development that showed remarkable strength through Q4.
According to BscScan, the daily transaction volume on BNB Chain has remained stable at around 3 million since the middle of August. However, there has been a significant increase in daily BEP-20 token transfers this year, reaching just over 5,000,000 on February 5, after a 66% increase over the previous year.
BscScan has revealed that the number unique BNB Smart Chain addresses just passed the 250 million mark. Each day, 41.3% more unique addresses are added on average.
Messari believes that the expansion can be attributed to the adoption a number ecosystem protocols such the Web3 onboarding protocol Hooked. A spike in DeFi activity at Venus Protocol and an increase in NFT activity via the OpenSea market are also responsible.
DeFiLlama says that the total BNB Chain DeFi value has increased by 25% since the start to reach $6.62 trillion. This information is included in the context of the sentence before.
“BNB Chain was successful in implementing an expansion plan that paved the way to major advancements towards acceptance. Trautman said that the company made several modifications to its functionality and merged with key partners to expand into DeFi, NFTs and GameFi.
Despite an increase in active users, the financial performance declined. It was observed that transaction fees were decreasing, which in turn led to a decline in the amount generated.
