In Q4, average daily addresses on the Binance blockchain network increased by 30% year on year.
According to new data, the Binance-native blockchain BNB Chain has continued to exhibit healthy activity growth in the fourth quarter of 2022 despite the larger crypto bad market.
Messari researcher James Trautman disclosed in a “State of BNB Chain Q4 2022” analysis published on Feb. 5 that the Binance network has proceeded with a “aggressive approach to invest financial and human capital across its ecosystem.”
Because of these continuing improvements and innovations, average daily active addresses and transactions “bucked a decreasing trend and increased by 30% and 0.2%, respectively,” according to the researcher.
In terms of on-chain activities, bear markets are often slow times; nonetheless, teams use this opportunity to continue producing and refining their goods.
“2022 was a turbulent year for the cryptocurrency business […] Despite market turbulence, BNB Chain lived true to its Build N’ Build moniker with network enhancements and ecosystem development that demonstrated significant strength during Q4,” Trautman stated.
According to BscScan, daily transactions on BNB Chain have been consistent at roughly 3 million since mid-August. However, daily BEP-20 token transfers have increased this year, with a 66% rise to little over 5 million on February 5.
According to BscScan, the number of BNB Smart Chain unique addresses has reached an all-time high of 250 million. Year on year, the average number of new unique addresses per day increased by 41.3%.
Messari attributed the increase to the adoption of many ecosystem protocols, including the Web3 onboarding protocol Hooked, an increase in DeFi activity on the Venus Protocol, and more NFT activity on the OpenSea marketplace.
Meanwhile, according to DeFiLlama, the total value secured by BNB Chain DeFi has climbed by 25% since the beginning of the year to $6.62 billion.
“BNB Chain implemented a growth strategy that made substantial leaps toward adoption. “It upgraded core functionality, integrated with strategic partners, and extended into DeFi, NFTs, GameFi, and beyond,” Trautman explained.
Despite the increase in user engagement, financial performance went lower. It was reported that average transaction fees had reduced, which contributed to lower revenue production.
“Ultimately, it was a positive indicator that the triggers for user growth came on the heels of a core user base and a more favorable valuation for BNB Chain’s network, especially after the FTX drama unfolded during Q4”, Messari said.
Looking ahead, Trautman believes BNB Chain will be able to continue its expansion, including adding scaling solutions and increasing throughput.
According to Cointelegraph, the Binance native token, BNB, has lost 1.2% in the last 24 hours to $326. The token has gained 25% in the last month but is still down 52.5% from its all-time high of $686 in May 2021.
