Binance Chain sees revenue jump 70%: Will it push BNB higher?
  • BNB network indicators showed growth last quarter.
  • The bearish mood towards BNB increased as short positions increased.

Binance Smart Chain [BNB] has been one of the networks that has faced a number of ups and downs over the past few months due to issues faced by Binance in terms of regulatory oversight.

BNB is doing well

However, despite facing these challenges, the BNB network continued to grow. In the first quarter of 2024, the network’s revenue increased significantly, totaling $66.8 million, a significant 70% increase from the previous quarter’s revenue of $39.2 million.

The first quarter of 2024 outperformed any quarter in 2023 in terms of revenue generation. However, this surge in earnings was primarily driven by the rise in the value of his BNB.

Gas fees from DeFi transactions remained the main source of revenue, contributing 76,200 BNB, an increase of 1.7% from the previous quarter.

DeFi trading accounted for 46% of total revenue. In particular, stablecoins recorded the largest quarter-on-quarter revenue increase, increasing by 29% from 19,500 BNB to 25,100 BNB.

Conversely, the gaming and infrastructure categories saw a significant decline in revenue.

In terms of overall activity, average daily transactions were down 9% from the fourth quarter. Average daily active addresses also increased significantly by 26%, from 1 million to 1.3 million.

Additionally, several protocols on the BNB Smart Chain have increased their average number of transactions per day. USDT emerged as one of the stablecoins with 619,300 daily transactions, an increase of 22% QoQ.

This nearly doubles the transactions of the second-place protocol, PancakeSwap, which averaged 345,200 transactions per day, an increase of 4%.

USDT and PancakeSwap accounted for 74% of protocol transactions, up 10% from the previous quarter. Overall, his average daily transactions related to the protocol increased by 5% from 1.2 million to 1.3 million.

Source: Messari

Increased desire to take short positions

At the time of writing, BNB is trading at $607.05, with its price down 1.41% in the past 24 hours. Additionally, BNB’s trading volume also decreased by 9% during this period.

Realistic or not, BNB’s market capitalization on SOL’s basis is:

Despite the strong performance shown by the BNB network, trader sentiment towards the BNB token remained cynical. Over the past few days, an overwhelming majority of traders have decided to short sell BNB tokens.

The percentage of short positions around BNB had increased to 52%. It remains to be seen whether the bears will prove to be right about BNB’s future.

Source: Coin Glass

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