Messari’s Q1 BNB Chain Report: Revenue Declined by 11.7% QoQ, User Activity Remains Strong

PANews

特邀专栏作者

2023-04-21 14:12 (UTC+8)

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Comprehensive interpretation of BNB Chain's performance in the first quarter.

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Comprehensive interpretation of BNB Chain's performance in the first quarter.

Original Author: Excerpted fromMessari

Original Compilation: Felix, PANews

main points

Original Author: Excerpted from
Original Compilation: Felix, PANews
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The market value of BNB Chain followed the rebound of the broader market this quarter, up 24.9% from the previous quarter. However, BNB Chain revenue (total transaction fees paid in BNB) decreased by 11.7% quarter-on-quarter.

During Q1, several ecosystem developments continued to drive address and transaction activity, thanks to the launch of Uniswap, the new GameFi and SocialFi apps.

Jump Crypto discovered a vulnerability in the BNB beacon chain and fixed it within 24 hours, preventing malicious exploitation and protecting funds.

Key indicators

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

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performance analysis

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network overview

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

LifeformAfter reaching the basic user base in the third quarter of 2022, the average number of daily active addresses and daily transaction volume of BNB Chain will start to trend upward in the fourth quarter of 2022. In the first quarter of 2023, the level of activity stabilizes, but still shows an upward trend quarter-on-quarter.
CyberConnectMessari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

In the fourth quarter of 2022, the underlying network utilization of BNB Chain is higher, as the average number of daily active addresses reverses, increasing by about 30% by the end of 2022. Despite the ongoing economic downturn, several ecosystem developments in Q1 2023 continued to drive address activity.

: DID solution provider

: Decentralized Social Graph Protocol

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

Daily transaction activity follows a similar pattern to daily active addresses. After reaching a base user base in Q3 2022, transaction activity will stabilize in Q1 2023. Overall, BNB Chain’s average daily transactions declined slightly (3.9%) at the end of the quarter, but rose steadily throughout Q1.

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financial overview

After a tumultuous 2022, the crypto market bounced back in January and ended the quarter showing resilience. As a result, BNB Chain’s financial performance has improved as network activity has trended upwards. The average transaction fee decreased and revenue decreased; at the same time, the circulating market value increased by 24.9% month-on-month.

DeFi

Due to the BNB token burning mechanism, the circulation of BNB continues to decline. Since the burn mechanism was launched in 2017, as of March 31, 2023, more than 44 million BNB (approximately 22% of its total supply of 200 million) have been burned. Last year, BNB’s average deflation rate was 1.1%.

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

BNB revenue (total transaction fees paid in BNB) decreased by 11.7%, while network value increased by 24.9% month-on-month. The deviation between the two may indicate that overall market sentiment is driving value more than underlying network utility.

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Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

With the rebound that began in January, TVL rose 10.2% in dollar terms. However, BNB-denominated TVL fell by 14.6%, suggesting that TVL was generated by rising USD-denominated asset prices rather than BNB usage.

Liquidity staking and mining platforms continue to support BNB Chain and its DeFi ecosystem. LSD protocol Ankr and liquidity mining platform Coinwind continued to grow during the quarter. They were in the top 10 by TVL in the first quarter, holding a combined TVL of about $245 million. Note that TVL is not double-counted for these platforms.

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

Almost all DeFi applications on BNB Chain benefited from the market rally throughout Q1. BNB Chain’s most prominent protocol, PancakeSwap, grew 3% month-on-month in terms of TVL. Meanwhile, TVL on Venus and Alpaca Finance grew by double digits, causing panakeswap’s dominance to decline for the third consecutive quarter.
The continued shift in TVL dominance on BNB Chain shows that a stronger DeFi ecosystem is taking shape. The risk of TVL being centralized in a single protocol (like PancakeSwap) is diminishing. As of the end of the first quarter, PancakeSwap accounted for about 43% of the TVL in the BNB Chain DeFi space, down from 46% in the previous quarter. Despite declining market share, PancakeSwap continues to innovate. It announced the launch of its V3, with a slew of new features and events coming early in the second quarter.
In addition to PancakeSwap, BNB Chain launched Uniswap in mid-March, making significant progress in scaling DeFi. Launched Uniswap and gained traction: processed over $50M in volume in the first two weeks and achieved $11M in TVL.
Other notable developments in BNB Chain DeFi include:
Trader Joe: An emerging DEX originating from Avalanche and expanding to BNB Chain.
Uniwhale: A decentralized leveraged trading platform launched on BNB Chain.

stable currency

Lif 3: LP perpetual exchange launched on BNB Chain.

Radiant Capital: LayerZero-based cross-chain lending protocol, deployed on BNB Chain.

stable currency

NFTs

BNB Chain's position in the stablecoin field is relatively impressive, and the total market value of stablecoins ranks third, second only to Ethereum and Tron.

At the beginning of the first quarter, BUSD accounted for 52% of the BNB Chain stablecoin market cap. However, after regulators forced Paxos to stop issuing BUSD, its users stopped using BUSD. As a result, the USD market value of BNB Chain dropped by about USD 2.5 billion (about 54%) month-on-month, and USDT began to dominate.

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GameFi

2022 is the year when the BNB Chain NFT field explodes. Although macro factors may have caused sales to stagnate in the fourth quarter, sales in the first quarter stabilized as total sales in the NFT secondary market increased by 2.9% month-on-month.

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

While sales were flat, independent buyers continued to outnumber independent sellers. In the fourth quarter of 2022, when BNB Chain NFT can be listed and sold on OpenSea, there will be a surge in buying activity. Likewise, buying activity spiked toward the end of Q1 as the Joepegs NFT marketplace expanded to BNB Chain and hosted an “ORIGINS Series” event. Additionally, K-pop star Kwon Ji-Dragon has teamed up with Fandom Studios to release the "Archive of PEACEMINUSONE" series on OpenSea.

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

Era 7: Game of Truth, X World Games, Tiny World, Meta Apes, and SecondLive are all titles that came out last year. These five games are the top five gaming apps with the highest average daily active wallet (UAW) on BNB Chain. In the first quarter, wallet activity slowed as gaming UAWs fell 41% overall compared to the fourth quarter of 2022.

While wallet activity for these top gaming apps has declined, new games continue to be launched and gain traction on BNB Chain. In Q4 2022, Yuliverse and PlayZap games will have very little average daily UAW. However, by the end of the first quarter, both games were on the rise, with Yuliverse and PlayZap averaging 1,500 and 8,500 daily UAWs, respectively.

Additionally, MOBOX’s UAW continues to remain around 5000, and Gameta continues to launch multiple mini-game series on its platform, solidifying its top 15 position on BNB Chain.

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Other use cases, infrastructure and tools

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

The user base of gamified SocialFi platform Hooked Protocol solidified in the first quarter after a rapid growth in the fourth quarter of 2022.

Social platform CyberConnect followed a similar trend to Hooked Protocol in the first quarter. Driven by Connected 2023, CyberConnect has a UAW of 30,000. Connected 2023, a hackathon involving four weeks of application development, culminated in 23 teams winning $50,000 in prize money across six categories.

In the first quarter, BNB Chain maintained an aggressive strategy, deploying financial and human resources throughout the ecosystem. While BNB Chain has a presence in DeFi, NFTs, and GameFi, its largest network incremental activity is driven by other use cases, especially in the SocialFi space.

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Staking and Decentralization Overview

Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong
During Q1, network staking and decentralization continued to improve. Total stake, average participating stake (total stake divided by total supply), and the number of validators validating blocks all increased month-on-month.
Messari Q1 BNB Chain Report: Financial Performance Improved, User Activity Remains Strong

BEP-131: Introducing Candidate Validators on the BNB Smart Chain.

BEP-153: This version was released in the fourth quarter, and realized the pledge support for BNB Chain through the new pledge system contract.

BEP-159: This BEP introduces a permissionless validator election mechanism, bringing staking economics to the beacon chain.

BEP-131, 153, and 159 will continue to contribute to the growth of active and candidate validator sets. This growth should enable greater participation in validating and staking, and thus greater staking distribution.

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qualitative analysis
Key events, catalysts and strategies for ecosystem growth
In addition to the growth mentioned above, BNB Chain also experienced three other levels of growth in the first quarter:

Technological development: Evolving network architecture and improving functionality.

User Access and Experience: Engage users and developers by improving user access and experience.

Community: Engage developers and drive adoption through community building.secondary titleecosystem challenge

While BNB Chain is making progress toward its long-term goals and continued adoption, the network also faced some challenges in the first quarter.In February, Jump Crypto's security team discovered a bug in the BNB beacon chain.loophole

file a lawsuit

epilogue

, accusing them of violating trading and derivatives regulations. While the outcome of the lawsuit is unpredictable, a negative outcome could slow down the development of the BNB Chain ecosystem.

For clarity, Binance and BNB Chain are separate entities, with the former being a centralized entity and the latter being an evolving decentralized network. However, Binance, Binance Labs, and Binance Launchpad help the BNB Chain ecosystem grow through asset listings, liquidity provision, investments, and project launches.

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epilogue

BNB

BNB Chain

DeFi

NFT

stable currency

GameFi

SocialFi

Uniswap

wallet

Messari