On-chain Activity On BNB Chain Grew In Q4 Amid Market Downtrend: Messari
- Posted on February 6, 2023
- News
- By Mark Otto
- 208 Views
The latest report from Messari researcher, James Trautman, revealed that BNB Chain recorded an increase in on-chain activity contrary to bear market trends. According to the report, it saw steady growth in the fourth quarter of 2022, regardless of the crypto winter.
In detail, the report stated that the network stepped up its developmental approaches across the ecosystem. Despite the depressing market and economic conditions, developers deployed financial and human capital at their disposal.
Unique Addresses Reaches An All-Time High Amid Protocol Adoption
Messari’s report disclosed that BNB Chain’s average daily active addresses and transactions rose by 30% and 0.2%, defying the bear market downtrend.
Furthermore, according to James Trautman, while other firms nearly went cripple in 2022, the network defended its full name, Build N’ Build, with network upgrades and expansion. Through this result, BNB Chain demonstrated its tenacity in the cryptocurrency industry.
Reports by BscScan show daily transactions on the network remained constant at about 3 million since Mid-August 2022.
But the daily BEP-20 token transfers increased by 66% to over 5 million on February 5. Also, unique addresses on the BNB Smart Chain have reached an all-time high of 250 million, a 41.3% year-on-year increase.
How Did BNB Chain grow Amid Depressing Crypto Atmosphere?
According to Messari, the network owes its growth to several crypto protocol adoptions. Some of these include the rise in DeFi activity on Venus protocol, increased NFT transactions on the OpenSea marketplace, and onboarding of the Web3 protocol, Hooked.
In addition, Data from DeFiLlama shows that the total value locked on BNB Chain DeFi increased by 25% since 2023 began, reaching $6.62 billion.
Moreover, BNB Chain implemented some strategies that led to an increase in 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 weren’t enough to improve the revenue as BNB Chain’s performance went down during the fourth quarter of 2022. The average transaction fees on the Binance Smart Chain dropped, leading to low revenue generation, Messari’s report noted.
But although the BNB network recorded a 10% revenue decline in Q4, Messari thinks the fundamentals remained positive.
The report highlighted the result showed that increased user adoption on the network was catalyzed by its foundational use cases and favorable valuation, even after the FTX implosion. In addition, users seemed to have gained more confidence in the BNB Network after the FTX crisis.
In his report, Trautman expects BNB Chain to maintain its growth, adding more scaling solutions and increasing throughput.
Meanwhile, BNB, is down by 3% over the past 24 hours, with a 24-hour trading price of $325.46. But it has witnessed a 25.2% price surge in the last 30 days and a 14-day increase of 7.3%.
Featured Image From Pixabay, Chart From Tradingview
Source: NewsBTC
