In the third quarter of 2024, the non-fungible token (NFT) market on BNB Chain saw an impressive comeback, with trading volumes increasing by 283%. According to blockchain analytics firm Messari, the daily average trading volume reached $600,400, marking a significant rebound for the network.
However, the surge in trading volume wasn’t due to an increase in the number of buyers. Messari’s report revealed that average daily buyers dropped by over 50%, indicating that the growth in activity was driven primarily by larger market participants—referred to as “whales.” These big players accounted for a substantial portion of the trading, despite a 53% decrease in the number of daily buyers.
A Closer Look at BNB Chain’s NFT Performance in Q3
Despite this surge, BNB Chain’s NFT trading volume in Q3—totalling $55.2 million—still falls behind other blockchains like Ethereum, which saw $120.7 million in trading volume during the same period. Networks such as Solana, Polygon, and Immutable also reported higher volumes than BNB Chain in the past 30 days.
While BNB Chain’s NFT market saw growth, other performance metrics painted a mixed picture. The platform experienced a 27.9% drop in revenue, largely due to a decline in decentralized finance (DeFi) gas fees, which fell by 27%. In addition, BNB Chain’s average daily active addresses decreased by 19%, and the number of daily transactions dropped by 8.1%.
Positive Developments on BNB Chain
On a more positive note, BNB Chain’s total value locked (TVL) increased by 2.2%, reaching $4.8 billion. A major contributor to this growth was the Venus Finance protocol, which saw a 13% increase in TVL, bringing its total to $1.79 billion.
In Q3, more tokens were burned than minted, resulting in a deflation rate of 4.5%—a factor that helped push BNB’s price up by 2.5%, even as the broader market experienced a slight regression.
New Developments for BNB Chain
BNB Chain also made strides in enhancing its ecosystem by introducing a real-world asset tokenization service. This new no-code solution allows users to tokenize real-world assets quickly and affordably, significantly reducing the time, cost, and complexity traditionally associated with tokenization.
As BNB Chain continues to grow and innovate, its integration with decentralized finance platforms and the ongoing development of its blockchain capabilities position it as a key player in the digital asset space.
