BNB Chain, one of the most relevant blockchains in the crypto ecosystem, concluded the third quarter of 2024 with a mixed performance.
During this period, the network launched several initiatives aimed at strengthening its ecosystem, such as the Gas-Free Carnival for stablecoin transfers, the Gas Grants Program, and the fourth phase of the TVL Incentive Program.
These initiatives seek to attract more users and encourage activity within the network.
In addition, BNB Chain continued to consolidate its multichain strategy, expanding the functionality of the BNB Chain Bridge, allowing transfers between different chains and improving the overall liquidity of its ecosystem.
The information presented comes from a detailed report by Messari, which provides a comprehensive analysis of the state of BNB Chain in Q3 2024.
In terms of metrics, the chain saw a slight increase in its Total Value Locked (TVL) in the DeFi sector, reaching $4.85 billion.
Venus Finance and Avalon Finance were the platforms that showed the greatest progress, with significant growth in their TVL, especially Avalon, which saw an increase of over 300% after joining the BNB Incubation Alliance.
While growth was positive, NFT activity also reflected a notable recovery, with daily transaction volume up 283%, although this growth was primarily driven by large individual traders.
Despite these achievements, the BNB market suffered a slight drop in its market capitalization, which fell by 4% during the quarter, reaching $82.79 billion.
This decline came amid a challenging global market environment, where the price of BNB adjusted along with other cryptocurrencies.
In addition, the chain’s revenue also saw a significant decline, falling 28% from the previous quarter.
However, the decline did not affect all revenue categories, as transactions between wallets increased by 53%, highlighting a trend towards the use of stablecoins.
Challenges and prospects for the future of BNB Chain
Despite the decline in some metrics, BNB Chain continues to strengthen its network through technological innovations and the promotion of new programs.
Token burning also remains a core part of its deflationary strategy, with 1.6 million BNB burned in July 2024, representing a value close to $971 million.
These mechanisms help reduce the circulating supply, thus maintaining the scarcity of the currency, which is a key factor for its long-term appreciation.
The chain remains a key player within the DeFi space, ranking fourth in terms of TVL, although its network activity has seen a slight decline.
The decline in the number of transactions and active addresses is an indication that, despite its efforts, BNB Chain faces challenges from competition from other platforms and the current bear market.
However, its commitment to multichain interoperability and the continued expansion of its ecosystem could give it a competitive advantage, allowing it to maintain its relevance in the blockchain space.
