Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

With a rich dApp ecosystem and low transaction fees, BNB Chain continues to be actively used by users.

The BNB Chain (formerly known as Binance Smart Chain or “BSC”) was launched in September 2020 to provide an alternative smart contract platform for the increasingly expensive Ethereum mainnet. It is a standalone blockchain that employs a proof-of-stake (PoSA) consensus mechanism (participants stake BNB to become validators). The chain is also compatible with the Ethereum Virtual Machine (EVM), which means it can take advantage of pre-existing Ethereum tools that are driving its huge growth.

BNB was created as a scalable infrastructure to handle large numbers of low-cost DeFi transactions without sacrificing speed. It is also designed to provide programmability and smart contracts for developers who want to publish their tokens on the BNB chain network.

To date, there are thousands of projects on the BNB chain, notable ones including Era7, SecondLive, Tiny World and MOBOX. In addition, PancakeSwap remains the most used dApp on the web in the second quarter of 2022. Of all the blockchains, BNB Chain remains the most used chain at the moment in terms of transactions and unique wallet addresses due to low transaction costs.

BNB’s 2022 Q2 key progress

  • The BNB Chain $1 billion Ecosystem Fund continues to fund numerous projects to grow and improve ecosystems.
  • Binance Cross-Chain Bridge 2.0 was launched on April 27, enabling users to bridge assets from any blockchain to the BNB chain
  • The BNB Smart Chain mainnet has undergone upgrades from Descartes Descertas (April 1) and Euler (June 9).
  • BNB Beacon Chain Open Source June 17
  • In June, BNB launched its fifth edition of the Most Valuable Builder program. This is named “MVB V: Uncharted Territory”.
  • Nansen 支持 BNB Chain NFT Analysis (June 13)
  • Released BNB Sidechain Sidechain Plan (June 2)
  • Add more validation nodes to the BNB chain (from 21 to 41)

BNB’s ecosystem

BNB’s ecosystem grew to include more than 1,400 dApps in the second quarter, with PancakeSwap, Venus, Alpaca Finance, SecondLive, Era7, Mobox and Tiny World in popularity. Despite the current market environment, the $1b ecosystem fund and the recent $500 million investment fund are expected to help the ecosystem grow.

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

Source: BSCDaily

Nansen’s BNB data

Daily Transactions

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

As can be seen from the chart above, trading volume and Gas continued to decline in the second quarter of 2022 as general on-chain activity decreased while the market continued to be bearish. The sudden spike between May 11 and 12 is likely to be a knock-on effect of UST decoupling and LUNA crash.

Number of Transactions: Ethereum vs BNB Chain

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

Source: Nansen

The BNB chain is the most active smart contract blockchain for transactions, even dwarfing Ethereum. Although transaction volume declined slightly in the second quarter (which can be explained by a general decrease in on-chain activity), it was still 3-6 times higher than Ethereum, peaking at 9.8 million transactions during the UST depeg event on May 12. Although some of this may be attributed to robot activity, the BNB chain is still a popular retail chain whose prices have exceeded the price of Ethereum.

BNB vs. Ethereum: Average daily Gas payments

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

The data above shows that the total gas paid on the BNB chain continues to decrease significantly compared to Ethereum. Although it is cheaper and faster to transact on the BNB chain, because the Binance chain has only 21 active validators, which is much more centralized than Ethereum. As a result, the BNB Chain developer community introduced the BEP-131 proposal, which aims to incentivize and increase the number of validators to further decentralize BNB chains. In addition, at the end of the last quarter, the daily gas charges paid in US dollars by both chains continued to decline (BNB details the chart below).

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

In addition, it is worth noting that BNB’s daily trading volume continued to remain high compared to Ethereum, while maintaining significantly lower daily gas charges – in the last week of the quarter, BNB averaged $700,000 and ETH was $5 million.

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

As mentioned earlier, PancakeSwap continues to dominate the frequency of use on the Binance chain, accounting for 20% of all transactions on the chain. Other noteworthy items in the second quarter were Era7, SecondLive, MOBOX and Tiny World, the most popular Play-to-Earn games this quarter. In addition, 33% of “unknown” tags refer to the sum of all Nansen’s unlabeled on-chain entities, not any single unknown entity.

Stablecoin trading volume on BNB

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

The daily stablecoin volume in the chain is another important indicator that can be used to assess the activity and adoption that occurs in the network. As chain adoption grows, so does the number of stablecoins on the daily chain, as stablecoins are a fundamental part of facilitating token transactions.

The graph above shows the daily on-chain volume for BNB on-chain USDT, DAI, USDC, BUSD, and TrueUSD. At the beginning of the quarter, there was a significant change in the daily on-chain trading volume of the different stablecoins available on the chain. USDT and BUSD accounted for the majority of activity, followed by USDC, DAI, and True USD. As a result of UST’s decoupling, most stablecoin trading volumes peaked on May 12, with USDT reaching $7.4.

Towards the end of the quarter, the daily on-chain volumes of USDT, BUSD and USDC were relatively close, with USDT trading volume down 87.29% since its peak, while BUSD and USDC trading volumes fell by 80.93% and 79% respectively. It’s also worth noting that TrueUSD peaked at $1.4b in early June, but only about $1 million at the end of the quarter, down more than 99.93 percent.

Daily active users of stablecoins on BNB

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

By further analyzing daily active senders, the most traded stablecoin on the BNB chain is USDT, followed by BUSD. There is a significant difference in the number of daily active senders between these two stablecoins and all other stablecoins on the chain. USDT continued to dominate BUSD since the first quarter, and the gap widened at the end of the second quarter. BUSD’s user base has decreased from a peak of 120,000 active senders per day to approximately 60,000. On the other hand, the number of daily active senders of USDT continued to climb to a peak of 235,000 in late June. In addition to this, DAI and TrueUSD continued to remain unchanged during the quarter, with the number of daily active senders for DAI continuing to hover around 1,200 and TrueUSD below 200.

Smart money on Ethereum is on the Binance chain

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

The graph above shows a breakdown of the percentage of smart money addresses active on the BNB chain in Ethereum addresses. They have been classified according to the type of smart money.

Most smart money continues to belong to punch ore pledgers or liquidity providers (First Mover Staking, First Mover LP, Smarter LP, Smart LP), which can be explained by the higher APY of such activity on the chain. Given the continued high growth in on-chain NFT activity since the first quarter, it was followed by smart money on NFTs. Institutional investors are a smaller segment with an overlap rate of 23.2%.

Total Value Locked

Nansen: Data Overview Key Developments in the Second Quarter of BNB Chain

According to the TVL table above, TVL declined further in the quarter as the cryptocurrency market faced an overall downward trend. However, it should be mentioned that BNB has a lower percentage decline in TVL at 58.3%, while Ethereum is down 65.5%.

conclusion

Despite the downturn in the market, BNB remains the most used chain in day-to-day transactions due to its low gas premiums. Throughout the second quarter, BNB also used its $1 billion ecosystem fund to actively fund new projects to improve ecosystems, despite poor market conditions. With its vast dApp ecosystem and low transaction fees, the BNB chain continues to be actively used by users. The introduction of BNB liquidity pledges in the third quarter, as well as the BEP-126 Plan: a fast termination mechanism on the BNB beacon chain, are expected to reduce transaction closing times.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nansen-data-overview-key-developments-in-the-second-quarter-of-bnb-chain/
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