BNB Chain Sees Surge in NFT Trading Despite Decline in Retail Activity
During the third quarter of 2024, crypto whales were the dominant force behind NFT trading activity on BNB Chain, despite a noticeable drop in retail participation.
A report from Messari highlights that while retail traders became less active, NFT trading volume on BNB Chain surged by 283%, reaching an average daily volume of $600,400, up from $156,900 in Q2. However, the number of unique buyers dropped significantly by 53%, suggesting that larger traders, or “whales,” were executing more significant transactions, driving the overall market growth.
Despite the boost in trading volumes and transactions (which increased by 47%), the decline in unique buyers indicates that individual retail traders were less engaged. BNB Chain’s native token, BNB, faced some challenges, with a 4% drop in market capitalization, falling behind Solana in total value. Network revenue also declined, as transaction fees dropped by 28% from the previous quarter.
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Despite these pressures, BNB Chain’s decentralized finance (DeFi) ecosystem showed resilience. The total value locked (TVL) grew slightly by 2% to $4.85 billion, with Venus Finance emerging as a key player, increasing its TVL by 13%. However, the protocol also saw a significant decline in borrowing activity.
BNB Chain’s technical upgrades, including the Bohr Hardfork and Feynman Upgrade, played a critical role in maintaining network stability. The chain also introduced a gas-free initiative to stimulate adoption by eliminating transfer fees for stablecoin transactions.
Overall, while BNB Chain faced some market challenges, the technical and DeFi advancements in Q3 underscored the network’s ability to maintain growth and capital inflow, despite external pressures.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
