According to on-chain analytic firm, Messari, the on-chain activity in Binance’s native blockchain BNB witnessed a promising surge in user activity in Q4 despite the crypto market’s downtrend.
The Binance exchange has become one of the leading platforms for buying and trading cryptocurrencies, offering a wide range of services, including spot trading, futures trading, and staking. In addition, the Binance ecosystem has also expanded to include a decentralized exchange (DEX), a blockchain-based lending platform, and more. With the growing popularity of Binance, its native BNB chain also witnessed a massive surge in user activity. Recently, on-chain analytic firm, Messari, revealed that the BNB chain had seen a spike in its on-chain activity in Q4 despite an overall bearish market trend.
BNB Chain Daily Active Addresses Soar To New Highs
Despite the bearish trend in the crypto market, Binance’s native blockchain, BNB Chain, has been steadily rising in the activity chart, according to a recent report by Messari. In the “State of BNB Chain Q4 2022” report, researcher James Trautman revealed that the Binance network has continued to show unwavering growth with an “aggressive strategy to deploy financial and human capital across its ecosystem.”
Due to several ongoing updates and developments in the BNB chain, average daily active addresses and transactions “bucked a downward trend and grew by 30% and 0.2%, respectively,” the researcher mentioned.
Bear markets can be a slow and trying time for many in the cryptocurrency world, but not for the Binance-native blockchain, BNB Chain. While most crypto-assets see a dip in on-chain activity, the team behind Binance has taken advantage of the bear market to continue growing and developing their products. The “State of BNB Chain Q4 2022” report by Messari noted that the Binance network has been making waves even in the face of a bear market. The report highlights the aggressive strategy deployed by Binance in investing financial and human capital across its ecosystem, including the Binance decentralized exchange and lending platform.
BNB Chain Executes A Growth Strategy
It’s not uncommon for cryptocurrency transactions to slow down in bear markets, but BNB Chain is proving to be the exception to the rule. BscScan reports that daily transactions on the BNB Chain have remained robust, hovering around 3 million since mid-August. The exciting part is the recent surge in daily BEP-20 token transfers on the Binance network, with a whopping 66% increase to over 5 million on 5 February.
Trautman explained, “2022 was a tumultuous year for the crypto industry […] Despite the market volatility, BNB Chain lived up to its Build N’ Build name with network upgrades and ecosystem expansion that showed considerable strength through Q4
The Binance network is thriving, and the numbers are proof. BscScan further reports that BNB Smart Chain unique addresses have reached an all-time high of 250 million, with an impressive 41.3% year-on-year increase in average daily new unique addresses.
To explain the reason behind this growth, Messari credits the surge to the adoption of several key ecosystem protocols, including the Web3 onboarding protocol Hooked and the explosive DeFi activity on Venus Protocol. NFT activity on the OpenSea marketplace is also on the rise, further boosting the growth of Binance’s network. DeFiLlama noted that BNB Chain DeFi’s total value locked has spiked by 25% since the beginning of the year to reach $6.62 billion.
Trautman said, “BNB Chain executed a growth strategy that facilitated significant strides toward adoption. It made several upgrades to core functionality, integrated with strategic partners, and expanded into DeFi, NFTs, GameFi, and beyond.”
Even though more people are using the network, the financial results are not good. People are paying less for transactions, which means the network is making less money. During the quarter, the network’s revenue went down 10%. However, the experts at Messari think the overall situation is still good. The firm noted, “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.”