Average daily addresses on this altcoin network, stable activity in Q4 increased 30% YoY.
Altcoin shows activity increase
According to recent research, Binance-exclusive blockchain BNB Chain continued to show steady activity growth in the fourth quarter of last year despite the broader crypto bear market. Messari researcher James Trautman revealed in the ‘State of the BNB Chain’ report published Feb. 5, Q4 2022, that the Binance network is continuing with ‘an aggressive strategy to distribute financial and human capital across its ecosystem’.
Due to these ongoing updates and developments, the researcher noted that average daily active addresses and transactions ‘break the downtrend and grow by 30% and 0.2% respectively’. Bear markets are generally quiet periods for on-chain activity, but teams use this time to continue building and improving their products.
Trautman said, ‘Although 2022 will be a turbulent year for the crypto industry, ‘BNB Chain’ is in its 4th year. ‘Build N’ Build lives up to its name, with network upgrades and ecosystem expansion showing considerable strength throughout the quarter. BscScan reports that daily transactions on the BNB Chain have remained stable at around 3 million since mid-August. But daily BEP-20 token transfers have seen a surge in activity this year, hitting just over 5 million on Feb. 5, up 66%.
BNB Smart Chain unique addresses are currently at an all-time high of 250 million, according to BscScan. The daily average number of new unique addresses increased by 41.3% on an annual basis.
Explained the reasons for the growth
Messari attributed the growth to the adoption of various ecosystem protocols such as the Web3 onboarding protocol Hooked, to the increase in DeFi activity over Venus Protocol, and to increased NFT activity in the OpenSea market. Meanwhile, the total locked value of BNB Chain DeFi has increased by 25% since the beginning of the year, reaching $6.62 billion, according to DeFiLlama.
Trautman said, “BNB Chain has driven a growth strategy that facilitates significant steps towards adoption. It has made several upgrades to core functions, integrated with strategic partners, and expanded to DeFi, NFTs, GameFi and beyond.” said.
However, financial performance declined despite the increase in user activity. It is stated that average transaction fees have decreased, which contributes to less revenue. Network revenue fell 10% in the quarter, but Messari concluded that fundamentals are still positive:
“Finally, especially after the FTX drama unfolding in Q4, it was a positive sign that the catalysts for user growth came right after a more positive valuation for a core user base and BNB Chain’s network.”
Looking forward, Trautman said he expects BNB Chain to continue its growth by adding scaling solutions and increasing business volume. BNB Chain’s native token, BNB, has dropped 1.2% in the last 24 hours to $326, according to cryptokoin.com data. This altcoin is up 25% over the past month, but remains 52.5% below its all-time high of $686 in May 2021.
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