Binance’s native blockchain, BNB Chain, continued to show steady activity growth in the fourth quarter of last year despite the cryptocurrency bear marketaccording to recent research.
In a “State of BNB Chain Q4 2022” report published on February 5, Messari researcher James Trautman revealed that the Binance network had continued with an “aggressive strategy to deploy financial and human capital throughout its ecosystem.”.
Due to these continuous updates and developments, the daily average of active addresses and transactions “bucked a downward trend and grew by 30% and 0.2%, respectively,” the researcher noted..
Bear markets are usually quiet periods in terms of on-chain activity, however, teams take advantage of this time to continue building and developing their products..
Trautman wrote that while “2022 was a tumultuous year for the cryptocurrency industry,” BNB Chain “lived up to its Build N’ Build name with network upgrades and ecosystem expansion showing considerable strength through the fourth quarter.” “.
BscScan reports that daily transactions on BNB Chain have been stable at around 3 million since mid-August. However, daily transfers of BEP-20 tokens have seen an uptick in activity this year.; has had a 66% increase to just over 5 million on February 5th.
According to BscScan, unique addresses on the BNB smart chain have reached an all-time high of 250 million. The daily average of new unique addresses grew by 41.3% year-on-year.
Messari attributed the growth to the adoption of various ecosystem protocolssuch as the Web3 Hooked shipping protocol, an increase in DeFi activity on the Venus protocol, and increased NFT activity on the OpenSea marketplace.
Meanwhile, BNB Chain’s DeFi total value locked up 25% since the start of the year to $6.62 billionaccording to DeFiLlama.
“BNB Chain executed a growth strategy that facilitated significant strides towards adoption. It made several updates to core functionality, integrated with strategic partners, and expanded into DeFi, NFT, GameFi and beyond,” Trautman said..
However, despite the rebound in user activity, financial performance was down. Average transaction fees fell, contributing to lower revenue generation, he said..
Network revenue was down 10% in the quarter, but Messari said fundamentals were still positive.concluding that:
“Ultimately, it was a positive sign that the catalysts for user growth came from a foundational user base and more favorable valuation for the BNB Chain network, especially after the FTX drama played out over the fourth quarter.”
Looking ahead, Trautman said he expects BNB Chain to continue its growth, including adding scaling solutions and increasing performance..
BNB Chain’s native token BNB is down 1.2% over the past 24 hours, falling to $326, according to Cointelegraph. The token has gained 25% in the past month, but is still 52.5% below its May 2021 all-time high of $686.
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