The BNB Chain experienced a significant increase in average daily active addresses during the second quarter of 2023, reaching a total of 1.4 million. This marks a 25.6% surge compared to the previous quarter. The data, reported by crypto intelligence firm Messari, indicates a strong growth trend in user activity on the BNB Chain.
According to Messari’s report, the number of daily active addresses came close to the all-time high of approximately 1.5 million recorded during the end of the last bull season in Q4 2021. This suggests a sustained level of interest and engagement from users on the BNB Chain.
One of the key factors driving this growth in daily active addresses and transactions is the rise in activity from omnichain interoperability and cross-chain messaging protocol LayerZero. This protocol has played a significant role in facilitating increased transaction volume and attracting users to the BNB Chain.
In addition to LayerZero, notable transaction activity was also observed on platforms such as PancakeSwap, Hooked Protocol, and CyberConnect. These platforms have contributed to the overall growth and adoption of the BNB Chain.
While daily transactions on the BNB Chain increased, the average daily transaction fee experienced a significant decrease of 25.5%. This reduction was a result of BSC validators voting to slash gas fees by 40%, making the BNB Chain more competitive with other low-cost protocols. However, this gas fee cut also had an impact on BNB Chain’s revenue, which decreased by 6.1%.
Despite the positive growth in user activity, the market capitalization of the BNB Chain saw a decline of 25.2% in Q2. This drop can be attributed to the U.S. Securities and Exchange Commission’s classification of Binance Coin (BNB) as a security in its lawsuits against Binance and Coinbase. This regulatory scrutiny had an impact on the market perception of BNB and its overall value.
In terms of decentralization and staking, the BNB Chain remained stable in Q2. The total stake, average engaged stake, and the number of validators validating a block were relatively unchanged, according to Messari’s findings. The implementation of BEP-131, BEP-153, and BEP-159 standards in the previous quarters has contributed to the network’s expansion and increased participation in staking.
Looking ahead, the BNB Chain aims to further decentralize by implementing a validator reward model and reputation system. This initiative is expected to increase the number of validators from 29 to 100, further enhancing the network’s security and decentralization.
Overall, the BNB Chain has experienced significant growth in user activity, with a notable increase in daily active addresses and transactions. Despite challenges in the market capitalization and regulatory landscape, the BNB Chain remains focused on expanding its ecosystem and improving decentralization.