Binance’s native blockchain, the BNB Chain, continued to show steady activity growth in the fourth quarter of last year despite the crypto bear market, according to a new study.
James Trautman, a Messari researcher, said in a report “State of BNB Chain Q4 2022” released on February 5 that Binance’s network will “spread financial and human capital across the ecosystem. It revealed that it continued to develop an aggressive strategy.
With these continued updates and developments, average daily active addresses and transactions “bounced the downward trend and increased by 30% and 0.2%, respectively,” he notes.
A bear market is usually a period of sluggish on-chain activity, but the BNB Chain team appears to be taking advantage of this period to continue building and developing their product.
“2022 has been a turbulent year for the cryptocurrency industry,” said Trautmann, but BNB Chain “showed considerable strength through the fourth quarter with network upgrades and ecosystem expansions, leading to Build N’ Build. I lived a life worthy of my name,” he wrote.
Daily transactions on the BNB chain have stabilized at around 3 million since mid-August, according to BscScan. However, daily BEP-20 token transfers have picked up momentum this year, rising 66% to just over 5 million on February 5.
According to BscScan, the number of unique addresses on the BNB smart chain is currently at 250 million, a record high. Average new unique addresses per day increased by 41.3% year-on-year.
Messari said the adoption of several ecosystem protocols, including the Web3 onboarding protocol Hooked, surge in DeFi activity in Venus Protocol, and increased NFT activity in the OpenSea marketplace, is the growth driver.
Meanwhile, according to DeFiLlama, the total locked value of DeFi on the BNB chain has increased by 25% since the beginning of the year to reach $6.62 billion.
“BNB Chain has been able to make great strides towards adoption by executing its growth strategy: upgrading core features, integrating with strategic partners, expanding into DeFi, NFT, GameFi and beyond. I went,” Trautman said.
However, financial performance declined despite increased user activity. Average transaction fees fell, leading to lower revenue.
Network revenue fell 10% in the quarter, but Messari said the fundamentals remain positive.
Going forward, Trautmann expects the BNB chain to continue to grow, adding scaling solutions and increasing throughput.
