Bitcoin News

Reasons BNB Chain’s latest Development could be BNB’s saving grace

GMX, a decentralised exchange that was originally built on the layer 2 solution Arbitrum, has recently proposed launching on the Binance Smart Chain (BNB). This collaboration, according to GMX, will be beneficial to both GMX and Binance.

According to Santiment, the launch of GMX on the BNB chain could help address Binance’s declining transaction count and velocity.

A decrease in velocity indicated that the frequency of BNB transfers between addresses had decreased. This could be an indication of a drop in overall activity on the chain.

This decrease in activity could be attributed to a decrease in dApp usage. According to Dapp Radar data, popular DEXs such as PancakeSwap and Hooked saw a decrease in the number of unique active wallets on their network. Hooked’s unique active wallets have decreased by 47.26% in the last seven days.

On the other hand, the number of unique active wallets on PancakeSwap decreased by 25.26%. Furthermore, volume on the dApp fell by 56.04% during the same time period.

Despite the fact that dApp activity on the BNB chain has continued to decline, the BNB chain has grown in terms of TVL.

According to DeFiLlama data, BNB’s TVL increased from $4.13 billion to $4.23 billion in the last week. Despite the increasing TVL observed by BNB, its revenue continued to decline.

According to token terminal, BNB’s revenue decreased by 33% in the last week, resulting in a TVL of $5.7 million at the time of writing.

Despite the fact that BNB revenue has continued to decline, the BNB token has seen some positive developments.

The volatility of the BNB token, for example, has decreased. The decreased volatility of BNB in the market may appeal to investors seeking a more stable asset to invest in.

Investors may feel more comfortable holding onto their assets for longer periods of time when volatility is low. This is due to the lower likelihood of unexpected price fluctuations.

According to Messari, there was a decrease in market capitalization dominance. This may cause some investors concern, as it suggests that BNB may be losing market share to other cryptocurrencies.

BNB was trading at $261.52 at the time of writing, with a 4.88% market cap dominance.


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