- BNB Chain showed consistent growth in the fourth quarter of 2022 despite the crypto bear market
- It aggressively deployed “financial and human capital across its ecosystem,” says Messari
- The adoption of several ecosystem protocols and increased activity in DeFi, NFTs, and GameFi led helped BNB chain gain from the crypto winter
BNB Chain, the blockchain of the crypto exchange Binance, showed steady growth following the winter of 2022, especially since September. According to a Messari analyst James Trautman’s report, the Binance network deployed “financial and human capital across its ecosystem.”
“It was a rollercoaster of a year for the crypto industry. Macroeconomic forces sparked a bear market in January,” he said. “The bear was perpetuated by the collapse of LUNA and UST in the spring. Finally, the failure of FTX and the contagion that followed brought the market to its knees. Despite the FTX drama and unfavorable price action, Q4 reflected that BNB Chain’s network and ecosystem continue to grow and remain competitive.”
Because of the consistent updates and newly added improvements, activity from the daily addresses and payments grew. The Binance team took advantage of the bear market and spent time developing the blockchain. As trading volumes went quiet and crypto personalities kept a low profile, BNB Chain gathered strength.
According to a BscScan report, the BNB Smart Chain received an all-time high of 250 million unique addresses. Messari saw the growth of Web3 protocols and NFT trades as the main catalysts that kept the blockchain strong even after the domino effect of closing DeFi and crypto companies.
BNB Chain is the underlying blockchain technology behind Binance Coin (BNB), the native cryptocurrency of the Binance platform. Binance is a leading cryptocurrency exchange that offers a wide range of services, including trading, staking, and borrowing. BNB is used to pay fees on the Binance platform and can be exchanged.
The BNB Chain provides a high-performance, low-latency, and secure platform for decentralized applications (dApps) and enables users to build decentralized exchanges (DEXs). The Binance ecosystem is constantly expanding, and BNB plays a crucial role in this growth as it provides a way for users to access new services and opportunities.
Financial Performance Reduced but Doesn’t Stop BNB Chain
While the number of unique members made BNB Chain one of the only highly active blockchains in 2022, it could have performed better financially.
The average daily transactions were reduced, causing 10% lesser revenue for the network. Yet, it remains loyal to its fundamentals, according to Messari. After all, BNB means “Build N’ Build,” which influenced traffic for DeFi, NFT, and GameFi protocols.
Messari’s Trautman reported, “As the year rounded out, BNB Chain’s mission toward adoption remained intact. It boasted several network upgrades, integrations with partners like OpenSea, and the execution of an aggressive growth strategy to expand its ecosystem across DeFi, NFTs, GameFi, and beyond. Community building efforts also noticeably ramped up heading into 2023.”
Many firms may have crumbled, but the system continues for the Binance network. Even with many popular analysts, tech investors, banks, and authorities criticizing the exchange, Binance seeks to create a more trustworthy exchange and network. With such dedication to Web3, BNB Chain would continue as a pioneer of blockchain development worldwide.