01/08/24

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BNB Smart Chain (BSC) witnessed varied results in the second quarter of the year, reflecting broader trends in the cryptocurrency market which experienced a cooling phase following substantial price gains in March. The BNB token, integral to the BSC ecosystem, showed a minor decline of 5% quarter-over-quarter, while various network metrics illustrated both positive and negative dynamics.

Recent analysis revealed that the revenue generated on the BSC plummeted by 28% to $48.1 million in Q2. While this represented a decline from the previous quarter, it reflected a smaller year-over-year decrease of 8% from $52.4 million in Q2 of the prior year. This revenue drop was significantly influenced by the diminished value of BNB, as the revenue expressed in BNB experienced a more considerable decline of 51%, falling from 165,100 BNB to 81,300 BNB.

Network activity similarly faced challenges, with daily transaction averages declining by 10% to approximately 3.7 million and active addresses reducing by 18% to around 1.1 million. The downturn wasn’t unique to BSC, as many smart contract networks recorded a reduction in on-chain activities following a vigorous first quarter. In a noteworthy contrast, the decentralized exchange Uniswap saw its daily transactions surge by 630%, while PancakeSwap, which had previously led, suffered a 46% decrease.

In terms of staking, the total amount of BNB staked increased by 30%, reaching 30.4 million BNB, with the dollar value of this staked amount rising to $17.7 billion. This positions BSC as the third-largest Proof-of-Stake network in terms of staked value, although it still falls short compared to Solana with its staked value of $38.4 billion. Conversely, the total value locked (TVL) in the decentralized finance (DeFi) sector fell by 24% to $5.5 billion, primarily influenced by a steep 41% reduction in borrowing activity within the Venus Finance protocol.

Ending the quarter on a low note, BNB closed at $567, down from its all-time high of $722 seen in March. Despite these shifts, BSC retained the third-highest trading volume for decentralized exchanges in Q2, achieving $66 billion in total volume, just behind Ethereum and Solana. At present, BNB trades around $586, with a slight increase over the day despite a decrease in trading volume. The token has been fluctuating within the $570 to $590 range, with upcoming resistance levels indicating critical points for potential upward movement. The 200-day exponential moving average stands as an essential support level to observe for the future trajectory of BNB.