BNB Chain Q3 Revenue Takes A Hit: Fees Plummet By 40%
01 November 2023 - 11:00PM
NEWSBTC
In a recent report by Messari, the analysis sheds light on the
developments and challenges faced by Binance Chain (BNB), the
blockchain created by Binance, the world’s largest cryptocurrency
exchange regarding trading volume. The report highlights the
separation of BNB Chain from Binance and various events and
allegations that have impacted Binance and its associated entities
throughout the third quarter of 2023. Binance Chain Separation And
Challenges The Messari report emphasizes that BNB Chain has
distinguished itself as an independent entity separate from Binance
despite its origins as a product of the largest centralized
cryptocurrency exchange. However, the market has not fully
recognized this separation, leading to a lack of distinction
between BNB Chain and Binance. During the third quarter, Binance
encountered numerous challenges, including losing partnerships,
shutting down lines of business, conducting layoffs, and facing
accusations of violating sanctions. These events coincided
with a downward pressure on the value of BNB, which experienced a
25% decline compared to the previous quarter. In contrast, the
cryptocurrency market dropped by 9% during the same period. Related
Reading: Solana Bull Run Could Smash Through $40 Barrier This Week
– Here’s How The Messari report mentions that Binance, including
its subsidiary Binance.US, was accused by the Securities and
Exchange Commission (SEC) of engaging in unregistered offers and
sales of “crypto securities”, including BNB. These
allegations further added to the challenges faced by Binance and
its associated entities during the third quarter. BNB Chain
Performance And On-chain Activity Despite the challenges, BNB
maintained its position as the fourth-largest cryptocurrency by
market capitalization, with a market cap of $35.3 billion. The
circulating supply of BNB decreased by 1.3% in the third quarter
due to the token-burning mechanism employed by BNB Chain. The
report also highlights the impact of adverse events on BNB Chain’s
on-chain activity. BNB Smart Chain’s revenue, measured in BNB, fell
in line with the decline in BNB’s market cap, indicating a decrease
in activity on the Binance Smart Chain (BSC). Daily
transactions (-14%) and average fees (-12) in BNB also experienced
declines during this period. BNB Chain offers staking opportunities
for cryptocurrencies such as Ethereum (ETH), BNB, Cardano (ADA),
and others. The report notes that the total stake and eligible
supply declined by 3% and 2%, respectively, while the average
annualized staking yield decreased from 2.6% to 2.1% during the
third quarter. The DeFi sector on the BNB Chain demonstrated
strength compared to other sectors. The NFT space experienced
increased secondary sales volume, unique buyers, and sellers.
However, stablecoin transfers and GameFi experienced declines in
volume. The report suggests that newer applications on BSC may have
influenced the growth of unique buyers and sellers in the NFT
sector. Related Reading: Bitcoin Whales Ramp Up Selling, BTC To
Decline Below $32,000? Ultimately, the Messari report provides
insights into the separation of BNB Chain from Binance and the
challenges faced by Binance and its associated entities during the
third quarter of 2023. Despite these challenges, BNB Chain
maintained its market capitalization and continued to launch new
products and implement technical upgrades. The report highlights
the need for market recognition of the separation between BNB Chain
and Binance and the impact of adverse events on BNB Chain’s
on-chain activity. On the other hand, BNB has experienced a
prolonged downtrend since reaching its annual peak of $350 in
April. Subsequently, the token plummeted to $202 on October
9. However, recent developments have resulted in a positive
trend, with BNB recording a profit of 5.2% in the past 14 days and
1.8% in the last 30 days. As a result, the current trading price of
BNB stands at $223. Featured image from Shutterstock, chart from
TradingView.com
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