BNB Chain: Navigating Market Headwinds with Strength
BNB Chain ($BNB) has reportedly continued to be a top player in the crypto industry despite the market headwinds in Q4 2022.
According to a recently published quarterly report (titled “State of BNB Chain Q4 2022”) about BNB Chain that was written by James Trautman, a Research Analyst at Messari, “BNB Chain lived up to its Build N’ Build name with network upgrades and ecosystem expansion that showed considerable strength through Q4.”
Despite the market volatility, BNB Chain followed a growth strategy that enabled increasing adoption. This included making several upgrades to core functionality, integrating with strategic partners, and expanding into DeFi, NFTs, and GameFi.
BNB Chain executed a growth strategy that facilitated significant strides toward adoption. It made several upgrades to core functionality, integrated with strategic partners, and expanded into DeFi, NFTs, GameFi, and beyond.
Trautman claims that in Q4 2022 the number of daily active addresses on the network went up, and the number of average daily transactions stayed around 3.4 million per day. Furthermore, the network saw an increase in stake amounts and a growing validator set, which suggests progress toward a more decentralized state.
There was a drop in TVL of 23.6% (in USD terms) in the DeFi sector on BNB Chain apparently due to the collapse of FTX; however, the NFT sector continued making progress, establishing partnerships with OpenSea and other important NFT-based projects to increase demand. GameFi continued growing as the result of BNB Chain’s growth initiatives and strategic partnerships with “dozens of projects.”
The report also mentioned that BNB Chain was successful in executing its 2022 roadmap and intends to continue its focus on growth strategies and technical developments. Trautman says the BNB Chain team aims to expand the network with L2-like solutions, such as ZK-rollups and sidechains, and “increase decentralization by open-sourcing the validator set.” They also want to implement parallel EVM execution in several phases; they have already designed a new validator reward model that should be implemented this year.
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