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BNB Chain Ecosystem Growth in Q4 2022

Explore the significant developments and growth of the BNB Chain ecosystem during the fourth quarter of 2022, focusing on updates and innovations.
Published on 2023-02-06

BNB Chain's Remarkable Growth

The BNB Chain ecosystem witnessed significant growth during the fourth quarter of 2022, driven by strategic updates and investments in financial and human capital. The ecosystem's expansion was marked by an increase in average daily active addresses and daily transactions, reflecting its growing adoption.

Strategic Updates and Initiatives

Several key initiatives were launched to bolster the BNB Chain's ecosystem. These include the MVB V program, which selected seven projects for financial support, and the BNB Builder Grants aimed at encouraging projects to migrate to or build on BNB Chain. Furthermore, the introduction of European Innovation Incubator Programs and a $10 million Growth Incentive Program aimed to enhance ecosystem adoption. The release of the Soulbound Token (SBT) in the third quarter also played a role in boosting activity.

On-Chain Activity and NFT Growth

BNB Chain experienced a 30% increase in average daily active addresses, with daily transactions surging by 0.2%. Noteworthy contributions to this development include increased NFT activity on platforms like OpenSea and the adoption of ecosystem protocols like Hooked. Additionally, the GameFi sector saw steady user engagement with applications such as Era7: Game of Truth and Tiny Worlds.

DeFi Ecosystem Expansion

The total value locked (TVL) in the BNB Chain rose by 18% over the year, reaching $5.03 billion, despite a 23.8% decline in the fourth quarter. The introduction of liquid staking on platforms like Ankr and Stader further strengthened the DeFi ecosystem. However, BNB Chain's leading protocol, PancakeSwap, experienced a 27% drop in TVL.

Market Resilience and Challenges

Despite experiencing a valuation drop of 13.2% after the FTX collapse and declining daily revenue due to lower transaction fees, BNB Chain remained resilient. The native BNB token recovered some losses and was valued at $328.02 at press time. BNB Chain ranks third among blockchains in terms of TVL, showcasing robust growth in various sectors like GameFi, NFTs, and DeFi.

BNB Chain's continued expansion amidst market challenges highlights its potential and importance within the blockchain industry.

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