BNB Chain Sees NFT Comeback in Q3

Non-fungible tokens (NFTs) on the BNB Chain made a big comeback in the third quarter of 2024. According to a report by Messari, NFT trading volume on the blockchain surged 283% compared to the previous quarter.

The rise in trading volume came despite a significant drop in average daily buyers, highlighting the influence of whales. The average daily trading volume jumped to $600,400 during Q3. 

This growth was mainly fueled by large investors, commonly known as whales, while smaller buyers left the market. 

The average number of buyers fell over 50%, dropping to just 2,300 daily, according to Messari’s research. However, despite the decline in buyers, the total number of daily sales still increased by 47%, reaching 8,900 transactions per day.

Whale Activity Dominates NFT Trading

One key factor behind this NFT market revival on BNB Chain was whale participation. Large investors with significant capital began increasing their trades, which helped boost the overall trading volume. 

As Messari pointed out, whales were the main drivers of this growth, even though smaller users exited the market. 

“Whales dominated NFT activity in Q3,” the report noted, emphasizing how much influence these large investors had on the chain’s overall performance.

While BNB Chain saw strong growth in its NFT market, its total trading volume still lagged behind other major blockchains. Ethereum, for example, recorded $120.7 million in trading volume over the past 30 days, while Bitcoin logged $74.6 million during the same period, according to CryptoSlam data. 

This data suggests that while the BNB Chain performed significantly well, it still trails the larger NFT ecosystems like Ethereum and Bitcoin.

BNB Chain’s Mixed Performance in Q3

Despite the boost in NFT trading, BNB Chain saw mixed results across other key metrics in the third quarter. The blockchain’s revenue dropped 27.9%, mainly due to a decline in gas fees from decentralized finance (DeFi) transactions. 

This fall in revenue came as daily active addresses also decreased by 19%, settling at 900,000. Average daily transactions also fell by 8.1%, further contributing to the decline in revenue.

However, there were some positive developments for BNB Chain in Q3. The total value locked (TVL) on the chain increased slightly by 2.2%, reaching $4.8 billion. 

This increase was largely driven by Venus Finance, an algorithmic money market protocol, which saw a 13% rise in its TVL, bringing its total to $1.79 billion.

Another positive note for BNB Chain was its deflationary token model. During Q3, more BNB tokens were burned than minted, resulting in a 4.5% deflation rate. 

This deflation contributed to a 2.5% price increase for the BNB token during a period when the broader market experienced a slight decline, according to CoinGecko data.

BNB Chain’s Future Outlook

While BNB Chain’s performance in Q3 was mixed, it remains a major player in the blockchain space. It boasts the fourth-largest TVL among layer-1 blockchains, trailing only Ethereum, Solana, and Tron, according to DefiLlama data.

In addition to its growing NFT market, BNB Chain has continued to innovate. The blockchain recently launched a new real-world asset tokenization service. This service allows individuals and businesses to tokenize real-world assets in minutes using a no-code solution. 

According to Binance, this new feature significantly reduces the cost and time required to tokenize assets, potentially lowering barriers to broader participation.

Rida is a dedicated crypto journalist with a passion for the latest developments in the cryptocurrency world. With a keen eye for detail and a commitment to thorough research, she delivers timely and insightful news articles that keep her readers informed about the rapidly evolving digital economy.

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