Binance Smart Chain (BSC) has shown significant growth in various key performance indicators during the fourth quarter (Q4) of 2023, as detailed in a comprehensive Messari report. As the third-largest Layer-1 protocol by market capitalization, BSC has experienced positive momentum across financial metrics, underscoring a productive quarter for the blockchain ecosystem.
Record-Breaking Transactions
The report reveals that BSC’s market capitalization saw a remarkable 48% quarter-over-quarter (QoQ) surge, reflecting renewed interest in BNB (Binance Coin), the native asset of BSC, after two consecutive quarters of decline. Moreover, BSC’s revenue measured in USD experienced a significant QoQ growth of 27%, amounting to over $39 million in Q4, signaling increased activity on the protocol and the implementation of various initiatives throughout the year.
Gas fees burned in BNB, a metric reflecting network activity, also witnessed a notable 21% QoQ increase, attributed to the rising number of transactions and smart contract interactions, further reinforcing the Binance Smart Chain ecosystem.
In addition to financial metrics, BSC also 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% year-over-year (YoY) increase in active validators.
According to Messari, throughout 2023, BSC has demonstrated its capability 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, 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.
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, suggesting a potential upward trend in the next market cycle.
This growth in BSC’s ecosystem has also impacted the price of BNB. After a sharp drop, BNB surged from $238 to reach the $338 level before retracing to $287 following a correction, experiencing a 3.7% growth in the past 24 hours and pushing its current trading price above $302.
In conclusion, the comprehensive report by Messari underlines the significant achievements of Binance Smart Chain during the fourth quarter of 2023, reflecting its growing influence in the crypto industry.
