BNB Smart Chain Records Impressive Growth in Q1: Surpasses Bitcoin in Key Metrics
The Binance Smart Chain (BNB Chain), developed by leading cryptocurrency exchange Binance, experienced remarkable growth and performance in the first quarter of 2024, according to a recent report by Messari. BNB Smart Chain saw significant increases in market cap, revenue, average daily active addresses, decentralized finance (DeFi), total value locked (TVL), and average daily decentralized exchange (DEX) volume.
In terms of market cap, BNB Smart Chain achieved a staggering 89% quarter-over-quarter (QoQ) growth, reaching $92.5 billion. It secured the third position among all tokens, excluding stablecoins, surpassing Bitcoin’s performance, which saw a 65% increase in outstanding market capitalization over the same period.
The revenue generated by the Binance Smart Chain also experienced a substantial boost in Q1. With a 70% QoQ increase, the network collected $66.8 million in revenue. This surge in revenue was primarily driven by the appreciation of BNB’s price, with DeFi transactions, particularly gas fees, contributing 46% of the total revenue.
Despite a slight decrease in average daily transactions, BNB Smart Chain demonstrated a 27% year-over-year (YoY) increase, indicating sustained network activity growth. Moreover, average daily active addresses surged by 26% QoQ, reaching an impressive 1.3 million. Tether’s USDT and decentralized exchange PancakeSwap were the leading protocols on the BNB Smart Chain in terms of increased transaction volumes and active addresses.
BNB Smart Chain’s DeFi TVL denominated in USD experienced a remarkable 67% QoQ surge, reaching $7.2 billion. This positioned the Binance Smart Chain as the third-highest chain in terms of DeFi TVL denominated in USD. However, when denominated in BNB, TVL saw a slight decrease of 12%, indicating that the surge in USD value was primarily driven by BNB price appreciation and capital inflows.
Decentralized exchanges on the Binance Smart Chain experienced a staggering 193% QoQ increase in average daily trading volume. The total DEX volume for Q1 reached $1.1 billion, with PancakeSwap emerging as the dominant DEX on the platform. PancakeSwap’s average daily DEX volume surged by 140% QoQ, solidifying its position as the preferred DEX on the BNB Smart Chain.
Overall, Binance Smart Chain’s performance in the first quarter of 2024 showcased significant growth across various parameters, solidifying its position as an important blockchain platform. Currently, Binance Coin (BNB) is trading at $607, reflecting positive price movements and bringing the token closer to its all-time high of $686, reached in May 2021.