Key Takeaways:
- The total value locked (TVL) on BNB Smart Chain DeFi protocols has tanked.
- USDT continues to dominate among the stablecoins on the Binance Smart Chain.
- NFT secondary sales volumes on the BNB chain rose.
YEREVAN (CoinChapter.com) — The Binance Smart Chain, now known as BNB Smart Chain, has emerged as a groundbreaking Ethereum Virtual Machine (EVM) compatible blockchain platform. The BNB token serves as the lifeblood of the BNB Smart Chain.
Beyond its status as the chain’s “gas” token, BNB also empowers its holders with the privilege of on-chain governance rights. This multifaceted utility positions BNB as not just a cryptocurrency but a tool for active participation in the governance of the BNB Smart Chain.
Here is a look at some of the numbers in recent months.
Total value locked (TVL) in DeFi protocols tank
Total DeFi Value Locked (TVL) on the BNB chain ecosystem is tanking, according to recent data provided by Messari. Both in terms of USD and BNB, there has been a stable Quarter Quarter decline since last year.
In the third quarter (Q3) of 2022, there was as much as $5.7 billion locked in Decentralized Finance (DeFi) projects. By Q2 of this year, that number had already dropped to $4.7 billion. However, the last quarter saw a further decline of over 23%, bringing the current TVL in USD to just $3.6 billion.
The picture is not nice regarding the total value locked in the BNB token. At the end of Q4 last year, there were as many as 20.2 million in locked BNB tokens. Although that was a 3.2% drop from the 2.9 recorded in the previous quarter, it was still impressive.
By the first quarter of 2023, it had shed almost 13% more, reaching 17.6 million. However, last quarter, the total BNB locked in DeFi projects was just 15.7 million.
Although Pancakeswap’s share has dropped from 53% to 39% between Q3 of 2022 and Q3 of 2023, it remains the top protocol by TVL percentage.
Meanwhile, daily average transactions (USD) have tanked from $2.1 billion to $1.2 billion during the same period.
The Stablecoin market cap of BNB chain takes a hit
Within stablecoins, the BNB Smart Chain (BSC) is a formidable player.
This blockchain platform boasts the third-largest market capitalization in the stablecoin sector. With an impressive figure of approximately $5 billion, it trails only behind Ethereum and TRON in this category. However, the total stablecoin volume has dropped significantly.
Tether (USDT) remains the top stablecoin by transfer volume. It increased its share from 43% to 81%. However, it did so after certain developments earlier this year impacted the Binance USD (BUSD) stablecoin, which was closely competing with it.
In February 2023, Paxos notified customers of its intent to end its relationship with Binance for BUSD. The decision came after the Department of Financial Services (DFS) ordered Paxos to cease minting Paxos-issued BUSD.
Moreover, crypto exchange Coinbase (COIN) suspended trading for BUSD in March.
With the BUSD losing its share, USDT confidently consolidated its position despite the overall drop in the BNB chain’s stablecoin market.
NFT secondary sales volumes on the BNB chain
In the past year, the NFT sales volumes on the BNB chain have been all over the map. Between Q3 and Q4 of 2022, the secondary sales volumes (in USD) of nonfungible tokens dropped from $64.2 million to $31.5 million. That constitutes a drop of over 51%.
That number had plummeted even further at the beginning of this year, reaching just $18.6 million. However, it succeeded in registering an over 230% rise in one quarter, closing Q2 at nearly $62 million. It has since slipped around 11% to $55 million in Q3.
In BNB terms, the secondary sales volumes of NFTs have also jumped. Between the first and third quarters 2023, it rose from over 61,000 to nearly 240,000.
These gains come on the heels of substantial growth in the previous quarter, where unique buyers and sellers skyrocketed by 294% and 1,454%, respectively.
At the time of writing, BNB exchanges hands at around $212 per token. With a market cap over $32.2 billion, it remains the 4th most popular cryptocurrency.
