Binance Smart Chain Soars in Q1 2024, Outperforming Bitcoin in Market Growth

The first quarter of 2024 witnessed the Binance Smart Chain, an innovative product of Binance—the world’s premier cryptocurrency exchange by trading volume—enjoying a marvelous trajectory of market growth and spectacular performance. These noteworthy leaps, as itemized in a contemporary report by Messari, spanned a variety of market parameters, including market cap, revenue, average daily active addresses, decentralized finance (DeFi), total value locked (TVL), and average daily decentralized exchange (DEX) volume.

The Binance Smart Chain, better-known in the crypto circles as BNB, registered a remarkable upswing in market cap by 89% quarter-over-quarter (QoQ) in Q1 2024, hitting a zenith of $92.5 billion. This extraordinary milestone positioned BNB as the third most dominant token, outdone only by Ethereum (ETH) and Bitcoin (BTC), and this excludes stablecoins.

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An intriguing facet of BNB’s performance that was underscored in the report was its edging out of Bitcoin’s performance in the same period. Bitcoin saw its market capitalization rise by 65% during Q1 2024, a figure eclipsed by BNB’s leap.

The revenue generated by Binance Smart Chain didn’t lag behind. It enjoyed profound expansion, culminating in earnings of $66.8 million, marking a significant 70% QoQ growth. Messari attributed this healthy revenue surge to the rise in the price of BNB, primarily. Notably, the first quarter’s revenue overtook that of any preceding quarter in 2023. Revenue from DeFi transactions, particularly gas fees, played a pivotal role, contributing to almost half of the total.

BNB Smart Chain managed to hold its ground in network activity, despite a slight drop in average daily transactions. The network registered a decent 27% year-over-year (YoY) escalation. Meanwhile, the average daily active addresses witnessed a 26% surge QoQ to 1.3 million. Several protocols working on the BNB Smart Chain observed a rise in transaction volumes and active addresses, with prominent ones being Tether’s USDT and decentralized exchange (DEX) PancakeSwap.

The story of DEX trading volumes was equally compelling, with BNB Smart Chain’s DeFi TVL, denominated in USD, reaching a staggering $7.2 billion. This surge, by 67% QoQ, reserved Binance Smart Chain’s place as the third-highest chain in terms of DeFi TVL. Yet, the TVL showed a minor 12% decrease when denominated in BNB, signifying that the surge was primarily fueled by the appreciation of BNB price and capital inflows.

The total DEX volume for Q1 sky-rocketed to $1.1 billion, thanks to decentralized exchanges on the Binance Smart Chain experiencing an explosive 193% QoQ hike in average daily trading volume. PancakeSwap ruled the roost as the most preferred DEX on the BNB Smart Chain, recording an average daily DEX volume jump of 140% QoQ.

Across the board, the Binance Smart Chain demonstrated impressive growth in the first quarter of 2024, solidifying its position as an influential blockchain platform.

The price of Binance Coin, the native token of the exchange, is currently valuing at $607, a 2% upswing over the past 24 hours that is complimented by a 10% boost achieved over the last seven days. These encouraging numbers are inching the token closer to its historic high—$686, achieved in May 2021.