The number of average daily active addresses on the BNB Chain spiked to 1.4 million in the second quarter of 2023, signaling a 25.6% increase from the figure recorded in Q1.
According to a report by crypto intelligence firm Messari, the number of daily active addresses almost reached an all-time average of approximately 1.5 million recorded in Q4 2021, during the end of the last bull season.
BNB Chain Sees Increase in Daily Active Addresses
Messari’s researchers found that BNB Chain’s average new unique addresses increased by 91.1% in Q2, hitting all-time highs, and at the same time, daily transactions soared by 24%. The firm revealed that the growth in daily addresses and transactions was majorly driven by a rise in activity from omnichain interoperability and cross-chain messaging protocol LayerZero.
Besides LayerZero, notable transaction activity was recorded on PancakeSwap, Hooked Protocol, and CyberConnect.
While BNB Chain’s daily transactions increased, the average daily transaction fee plunged by 25.5%. This resulted from BSC validators voting to slash gas fees by 40% from 5 to 3 gwei to remain competitive with other low-cost protocols. The gas fee cut also affected BNB Chain’s revenue, which decreased by 6.1%.
BNB Chain’s Market Cap Plummeted
Messari further reported that the market capitalization of the BNB Chain plunged by 25.2% after the U.S. Securities and Exchange Commission tagged Binance Coin (BNB) as a security in its lawsuits against crypto exchanges Binance and Coinbase.
In addition, BNB’s circulating supply decreased in Q2 due to the asset’s token-burn mechanism. By the end of the quarter, roughly 23% – 46 million BNB – of BNB’s 200 million circulating supply had been burned in the program, which began in 2017, strengthening the asset’s deflationary rate of 1.1% attained in the past year.
Meanwhile, staking and decentralization on the BNB Chain remained stable in Q2. The total stake, average engaged stake, and the number of validators that validated a block were relatively unchanged, according to Messari.
The network also recorded two consecutive quarters of expansion after implementing the BEP-131, BEP-153, and BEP-159 standards for increased staking participation and decentralization.
BNB Chain intends to further decentralize by implementing a validator reward model and reputation system that would increase the number of validators from 29 to 100.
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