Binance Smart Chain (BSC) Market Cap Hits New Milestone, Registering 48% QoQ Surge
27 January 2024 - 11:00AM
NEWSBTC
Binance Smart Chain (BSC) has demonstrated notable growth in key
metrics during the fourth quarter (Q4) of 2023, as highlighted in a
comprehensive report by Messari. As the third-largest Layer-1
protocol by market capitalization, BSC experienced positive
progress across its financial indicators, signaling a productive
quarter for the blockchain ecosystem. Binance Smart Chain
Record-Breaking Transactions The report reveals that BSC’s market
capitalization witnessed a 48% quarter-over-quarter (QoQ) surge.
This surge reflects renewed interest in BNB (Binance Coin), the
native asset of BSC, following two consecutive quarters of decline.
Moreover, BSC’s revenue measured in USD experienced a significant
QoQ growth of 27%. This revenue surge, amounting to over $39
million in Q4, indicates increased activity on the protocol and the
implementation of various initiatives throughout the year. Related
Reading: Prepare For Impact: US Government Will Dump $130 Million
Worth Of Bitcoin Gas fees burned in BNB, a metric reflecting
network activity, also saw a notable QoQ increase of 21%. The
rising number of transactions and smart contract interactions
contributed to increased gas fees burned, further reinforcing the
Binance Smart Chain ecosystem. In addition to financial metrics,
BSC showcased impressive improvements in other areas. The number of
active validators increased by 25% QoQ, highlighting growing trust
and participation in securing the network. BSC’s commitment to
decentralization was evident as the protocol experienced a 54% YoY
increase in active validators. According to Messari, throughout
2023, BSC demonstrated its ability to handle heightened activity
while simultaneously reducing costs for users. Daily transactions
on the network witnessed a 35% year-over-year (YoY) increase and a
30% QoQ surge, averaging around 4.6 million transactions per day in
Q4. These spikes in transaction volume were attributed to
inscription-related activity, with BSC processing a record-breaking
32 million transactions on December 7, 2023. BSC’s DeFi Ecosystem
Reaches $4.6 Billion TVL Despite a decline in daily average active
addresses and new unique addresses, primarily due to users
exploring alternative chains like opBNB, BSC’s on-chain activity
remained robust. The protocol’s ecosystem of stablecoins,
dominated by Tether’s USDT, reached a total value locked (TVL) of
$4.6 billion in Q4, showcasing a 33% QoQ increase in Decentralized
Finance (DeFi) TVL. Related Reading: Bitcoin Capitulation: Holders
Flee BTC As Post-ETF Disappointment Hits While Non-Fungible Token
(NFT)- related metrics declined in Q4, Binance Smart Chain and
Ethereum (ETH) witnessed a resurgence in activity toward the end of
the quarter, indicating a potential upward trend in the next market
cycle. In addition to BSC’s growth, BNB also experienced notable
price movements. After a sharp drop, BNB surged from $238 to reach
the $338 level. However, it later retraced to $287 following a
correction. In the past 24 hours, BNB has recorded a growth
of 3.7%, pushing its current trading price above $302.
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