BNB Chain showed resilience in Q2 2024 despite facing headwinds. While BNB’s market cap dipped 5% to $85.8 billion, it held steady as the third-largest token by market cap, behind only Bitcoin and Ethereum.
According to Messari’s latest State of BNBChain report, the network revenue took a hit, falling 28% quarter-over-quarter to $48.1 million. The decline was even steeper when measured in BNB tokens, dropping 51% to 81,300 BNB. DeFi remained the largest revenue contributor at 17% market share, though its absolute contribution fell 46%.
BNB’s supply dynamics remained deflationary, with the circulating tokens decreasing to 147.6 million, equating to a 4.4% annual deflation rate. It positions BNB as one of the scarce deflationary Layer-1 networks during Q2.
Usage data presented a complex scenario. Daily transactions averaged 3.7 million, marking a 10% decline from the first quarter. Furthermore, active addresses also saw a drop of 18%, reaching 1.1 million per day. Nonetheless, this downward trend was not exclusive to the BNB Chain, with many smart contract platforms experiencing decreased on-chain activity following a bustling Q1.
Tether’s USDT stood out as the leading protocol on BNB Smart Chain, with an average of 617,300 transactions per day. Following closely behind was PancakeSwap, with 187,200 transactions. However, it encountered intensified competition from Uniswap, which experienced a remarkable 630% increase in daily transactions, reaching 88,700.
Technical developments and transition of BNB Beacon Chain
During the quarter, there were notable advancements in technology, such as the initiation of the BNB Beacon Chain’s sunset process. This phased transition is designed to move staking and governance functions to the BNB Smart Chain, thereby boosting security and streamlining operations.
The total value locked (TVL) on BNB Smart Chain dropped by 24% to $5.5 billion in the DeFi sector. Venus Finance and PancakeSwap maintained their positions as the leading protocols, jointly representing 72% of the TVL.
Furthermore, DEX volumes on BNB Smart Chain experienced a 23% decline, averaging $737.4 million daily. Nevertheless, it held firm as the third-largest chain in terms of DEX volume. PancakeSwap solidified its lead, commanding an impressive 86% share of the DEX volume.
However, the stablecoin market on BNB Smart Chain began to recover, indicating a 6% growth to reach $5 billion. USDT took the lead, boosting its market cap by 11% to $4 billion, now holding a significant 79% share of the stablecoin market on the chain.
