In Q3, BNB Chain witnessed renewed NFT trading activity, primarily from whale investors. Messari says NFT trading volumes hit a 283% increase over the previous quarter, averaging daily transactions at $600,400. While the number of participants fell, average daily sales increased by 47pc to 8,900 transactions, which is pointed out as a growing interest in BNB Chain’s NFT market.
In particular, NFT trading volumes rose, as did sales, but daily active buyers fell 53% to 2,300. This decline illuminates the influence of a group of a few whales (high-value investors) that dominated the market. Whales were a major contributor to the growth of the NFT market on the BNB Chain, unlike smaller users, who had fewer buyers.
NFT Trading Volume on BNB Chain Trails Ethereum
Although the trading activity on BNB Chain increased, its Q3 NFT trading volume, estimated to be $55.2 million, is significantly behind some of the largest blockchains. Over the past 30 days, Ethereum took the lead by accumulating $120.7 million, and Bitcoin recorded $74.6 million. CryptoSlam data also showed that NFT trading volumes on Solana, Mythos Chain, Polygon, and Immutable were higher than BNB Chain in the same period.
While NFT market share, unlike volume, is shared between leading blockchains, BNB Chain’s lower volume underscores it as a distant second. Yet, BNB Chain is one of the top blockchains, in fourth place for total value locked (TVL) behind Ethereum, Solana, and Tron. Binance Smart Chain’s NFT trading volume is still relevant, but this ranking shows how BNB Chain isn’t far behind as competitors catch up.
Mixed Performance Across BNB Chain Metrics
BNB Chain saw a 27.9% dip in revenue, which fell to $34.9 million in Q3, brought on mostly by lower gas fees. This decreased gas fees for decentralized finance (DeFi) transactions by 27% compared to the previous quarter. The drop in BNB Chain’s average daily active addresses lags a further 19%, down to 900,000, and daily transaction dips 8.1%.
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Despite these drops, the total value locked on the BNB Chain rose by 2.2% to $4.8 billion. Venus Finance’s TVL growth helped propel it to this 13% growth rate to $1.79 billion. If anything, these increases in TVL indicate a continued focus on DeFi activity on the BNB Chain despite an uptick of users and a decline in fee revenue.
Quick Tokenization Service Boosts BNB Chain Utility
The BNB Chain also recently launched a real-world asset tokenization service, which powers the functionality even more for users and businesses. Unlike any existing services requiring months of development and engineering, this service offers a no-code solution to quickly and efficiently tokenize physical assets in minutes. The goal is to reduce the cost, time, and labour involved while cutting down entry barriers for many users by reducing tokenizing assets’ costs.
The Binance team members say this service is meant to provide blockchain asset support to those interested in using blockchain asset management but don’t currently have the means. This tokenization feature allows BNB Chain to add NFT and DeFi and expand to have more use cases in digital assets. BNB Chain’s commitment to supporting innovative blockchain solutions and user-friendly tools dovetails with the platform’s broad usage for transacting with Tether and interacting with PancakeSwap.
Q3 was a strong period for BNB Chain because of strong whale-driven NFT activity and higher TVL but at the expense of revenues, user activity, and transaction volume. Unlike Ethereum and the flagship Bitcoin, there is significant trading on the BNB Chain for DeFi and NFT markets despite trailing major blockchains regarding the volume traded. Rather than holding its own on the blockchain, it is extending its offer, with the launch of its new tokenization service, to create a blockchain that supports many diverse applications beyond just traditional crypto transactions.
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