Binance Smart Chain (BSC) has shown remarkable growth in key metrics during the fourth quarter (Q4) of 2023, as highlighted in a comprehensive report from Messari.
As the third largest Layer 1 protocol In terms of market capitalization, BSC has made positive progress on its financial indicators, indicating a productive quarter for the blockchain ecosystem.
Binance Smart Chain record-breaking transactions
The report reveals that BSC’s market capitalization witnessed a 48% increase quarter-on-quarter (QoQ). This increase reflects renewed interest in BNB (Binance Coin), BSC’s native asset, after two consecutive quarters of decline.
In addition, BSC’s revenue, measured in USD, saw significant quarter-over-quarter growth of 27%. This increase in revenue, which exceeded $39 million in the fourth quarter, indicates increased activity on the protocol and the implementation of various initiatives throughout the year.
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Gas costs Burned in BNB, a metric that reflects network activity, also saw a notable QoQ increase of 21%. The rising number of transactions and smart contract interactions have contributed to higher gas costs, further strengthening the Binance Smart Chain ecosystem.
In addition to financial figures, BSC showed impressive improvements in other areas. The number of active validators increased 25% quarter-over-quarter, highlighting growing trust and participation in securing the network. BSC’s commitment to decentralization was evident as the protocol saw a 54% year-over-year increase in active validators.
According to Messari, by 2023 BSC has demonstrated its ability to handle the increased activity while reducing costs for users. Daily transactions on the network witnessed a 35% increase year-over-year (year-on-year) and a 30% increase quarter-over-quarter, with an average of approximately 4.6 million transactions per day in the fourth quarter.
These spikes in transaction volume were attributed to inscription-related activity, with BSC processing a record 32 million transactions as of December 7, 2023.
BSC’s DeFi ecosystem reaches $4.6 billion TVL
Despite a decline in daily average active addresses and new unique addresses, mainly due to users exploring alternative chains such as opBNB, BSC’s on-chain activity remained robust.
The protocol’s ecosystem of stablecoins, dominated by USDT from Tetherreached a total value locked (TVL) of $4.6 billion in the fourth quarter, showing a 33% quarter-over-quarter increase in Decentralized Finance (DeFi) TVL.
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While Non-Fungible Token (NFT) related metrics fell in the fourth quarter, Binance Smart Chain and Ethereum (ETH) witnessed a resurgence in activity towards the end of the quarter, indicating a potential upside in the next market cycle.
In addition to BSC’s growth, BNB also experienced notable price movements. After a sharp decline, the BNB rose from $238 to the $338 level. However, after a correction, it later returned to $287.
Over the past 24 hours, BNB has registered a growth of 3.7%, pushing its current trading price above $302.