On-chain Activity On BNB Chain Grew In Q4 Amid Market Downtrend: Messari

- Advertisement -

latest Messari Researcher’s Report, James Trautman revealed that the BNB chain registered an increase in on-chain activity, contrary to the bear trend. According to the report, it is expected to see steady growth in the fourth quarter of 2022, regardless of the crypto winter.

In detail, the report states that the network has further expanded its development approach throughout the ecosystem. Despite the dismal market and economic conditions, the developers deployed the financial and human capital at their disposal.

Unique addresses reach all-time high amid protocol adoption

- Advertisement -

Messari’s report revealed that the average daily active addresses and transactions on the BNB chain increased by 30% and 0.2%, respectively, reflecting the decline in the bear market.

Furthermore, according to James Trautman, while the other companies were nearly crippled in 2022, the network defended its full name, Build n’ Build, with network upgrades and expansions. Through this result, BNB Chain demonstrated its solidity in the cryptocurrency industry.

- Advertisement -

BscScan report shows Daily transactions on the network have remained stable at around 3 million since mid-August 2022.

On-chain activity on BNB chain increased in Q4 amid market downturn: Messari
Source: https://bscscan.com/

But on February 5, daily BEP-20 token transfers increased by 66% to over 5 million. Also, unique addresses on the BNB Smart Chain have reached an all-time high of 250 million, a 41.3% year-over-year increase.

How did BNB chain grow in the crypto environment?

According to Messari, the network owes its growth to the adoption of multiple crypto protocols. Some of these include an increase in DeFi activity on the Venus protocol, an increase in NFT transactions on the OpenSea marketplace, and the onboarding of the Web3 protocol, Hooked.

simultaneously, data from defilama Shows that the total value locked on BNB Chain DeFi has increased by 25% since the start of 2023, reaching $6.62 billion.

Furthermore, the BNB chain implemented some strategies that increased network adoption. It upgraded its core functionality, collaborated with several strategic partners, and expanded its offerings to NFTs, DeFi, GameFi, and more.

However, these impressive on-chain activity performances were not enough to improve revenue as BNB chain performance went down during Q4 2022. Average transaction fees on Binance Smart Chain dropped, resulting in less revenue generation, noted the Messari report.

But although BNB Network reported a 10% drop in revenue in the fourth quarter, Messari thinks the fundamentals remain positive.

The results highlighted in the report show that even after the FTX explosion, growing user acceptance on the network was driven by its fundamental use cases and favorable valuations. Furthermore, it seems that users have gained more confidence in the BNB network after the FTX crisis.

In his report, Trautman expects the BNB chain to maintain its growth, adding more scaling solutions and increasing throughput.

Meanwhile, BNB is down 3% in the last 24 hours 24 hour trading price of $325.46. But it has seen a 25.2% price increase in the last 30 days and a 14-day increase of 7.3%.

On-chain activity on BNB chain increased in Q4 amid market downturn: Messari
bnb decline on daily chart l bnbusdt on Tradingview.com

Featured Image from Pixabay, Chart from Tradingview

Credit : www.newsbtc.com

- Advertisement -

Recent Articles

Related Stories