Whales drive NFT comeback on BNB Chain in Q3: Messari

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As a researcher with years of experience in the crypto space, I find the recent performance of the BNB Chain quite intriguing. The surge in NFT trading volumes is certainly noteworthy, especially considering the 283% increase in Q3. However, it seems that this growth was primarily driven by ‘whales’ rather than small users, which might suggest a need for more inclusivity in the NFT market.

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In Q3, there was a significant surge in the trading volume of non-fungible tokens on the BNB Chain, as per data from blockchain analyst firm Messari. This increase amounted to 283%, with an average daily trade of around $600,400.

Based on data from Messari’s Research Manager “AJC,” it was observed that the daily average sales experienced a significant growth, rising by approximately 47% compared to the previous quarter, and reaching 8,900 units.

As a crypto investor, I noticed that the number of average daily buyers dropped significantly, down by 53% compared to the previous quarter, to around 2,300. This suggests that the activity in NFTs during Q3 was primarily driven by large-scale investors, or ‘whales’, rather than smaller users. This is based on the report released on Nov. 7.

Compared to the daily trading volumes of Ethereum and Bitcoin, which were $120.7 million and $74.6 million respectively for the past month as per CryptoSlam’s data, BNB Chain’s NFT trading volume, calculated by multiplying its average daily volume by the number of days in Q3, is significantly lower.

Over the given time period, it’s worth noting that Solana, Mythos Chain, Polygon, and Immutable have all surpassed the trading volume of the Binance Smart Chain (BNB Chain).

Other metrics describing BNB Chain’s performance were mixed. 

BNB Chain’s earnings decreased by about 27.9% from one quarter to the next, reaching approximately $34.9 million. This significant drop can primarily be linked to a nearly 27% decrease in transaction fees for decentralized finance deals.

As a researcher, I noticed that the number of daily active addresses on BNB Chain decreased by approximately 19%, landing around 900,000. Additionally, the average daily transaction volume dropped by 8.1% in the same period.

However, the total value locked on the BNB Chain increased 2.2% to $4.8 billion in Q3, with Algorithmic money market protocol Venus Finance being the biggest contributor to that rise, increasing 13% to $1.79 billion.

In the third quarter, more BNB tokens were destroyed than created, leading to a deflationary rate of 4.5%. This deflation, combined with a 2.5% increase in price, occurred while the overall market experienced a slight decline, according to CoinGecko’s data.

According to Messari’s analysis, two primary applications for the BNB Chain are facilitating transactions using the stablecoin Tether (USDT) and engaging with the decentralized trading platform PancakeSwap.

In 2020, Binance, a well-known cryptocurrency exchange, introduced the BNB Chain, which was previously known as Binance Smart Chain.

According to DefiLlama’s data, it ranks fourth in terms of TVL (Total Value Locked) among layer-1 blockchains, with Ethereum, Solana, and Tron ahead of it in this category.

This week, the BNB Chain introduced a novel service for tokenizing real-world assets without coding, allowing both individuals and businesses to do so swiftly, almost instantly.

The Binance team asserts that this solution substantially decreases the financial expense, duration, and workforce required for asset tokenization, making it more accessible for a wider range of people.

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2024-11-08 08:01