October 1, 2023


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BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

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The Binance-native blockchain, BNB Chain, has demonstrated a consistent increase in activity during the fourth quarter of 2022, despite the crypto market downturn.

A recent report titled “State of BNB Chain Q4 2022” published by Messari researcher, James Trautman, indicated that the Binance network continued its “aggressive strategy to deploy financial and human capital across its ecosystem”.

This approach resulted in a significant increase in daily active addresses and transactions, which rose by 30% and 0.2% respectively.

BNB Chain daily active addresses – Messari

The report stated that the crypto industry experienced a turbulent year in 2022, but Binance managed to maintain steady growth, making network upgrades and expanding its ecosystem.

Daily transactions on the BNB Chain  remained steady at around 3 million since mid-August 2022, while daily BEP-20 token transfers increased by 66% to just over 5 million on February 5th, 2023.

The unique addresses on BNB Smart Chain are currently at an all-time high of 250 million, according to BscScan, with a 41.3% YoY growth in average daily new unique addresses.

According to Messari, the growth of BNB Chain was due to the implementation of several ecosystem protocols, including Hooked – a Web3 onboarding protocol, and a significant increase in DeFi activity on Venus Protocol and NFT activity on the OpenSea marketplace.

Additionally, DeFiLlama reported that BNB Chain’s total value locked in DeFi has grown by 25% since the start of the year, reaching $6.62 billion.

“Trautman attested to BNB Chain’s success in executing a growth plan that propelled them towards wider adoption. By enhancing their core functionality, partnering with key players, and venturing into areas such as DeFi, NFTs, and GameFi, they have made substantial advancements,” stated Trautman.

Despite the increase in user activity, financial performance was not as favorable. The average transaction fees decreased, leading to reduced revenue generation.

Also, regardless of the10% decrease in network revenue for the quarter, Messari remained optimistic and concluded that the fundamentals were still favorable:

“Ultimately, it was a positive sign that the catalysts for user growth came on the heels of a foundational user base and a more favorable valuation for BNB Chain’s network, especially after the FTX drama unfolded during Q4.”

Going forward, James Trautman, researcher at Messari, anticipates that BNB Chain will sustain its growth trajectory through various means, such as the implementation of scaling solutions and improvement in the processing capacity.

The Binance native token, BNB, has declined 1.2% over the past 24 hours, trading at $326, according to Cointelegraph. Despite a 25% increase over the past month, the token remains down 52.5% from its all-time high of $686 in May 2021.

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