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Data Shows Binance Smart Chain Dominating DeFi

Is Binance Smart Chain the play for 2022? BSC has 5x more daily DeFi users than ETH.


  • BSC Daily DeFi Users Topping Charts
  • Staying Power Displayed in 2021
  • New Token Burning Mechanism

BSC Daily DeFi Users Topping Charts

If you thought Binance Smart Chain was going to be a relic of 2021, think again. The smart contract platform has firmly positioned itself at #3 by market cap and while its native projects like Pancake Swap and Venus have more or less been stagnant in price, BSC is actually dominating DeFi.

Data from DappRadar, which tracks daily active users, shows by that metric Binance is clearly the #1 most trafficked blockchain for DeFi, far and away. To put it in perspective, of the top 15 dApps by daily use, Binance has more than 7.5 million users, while Ethereum has just over 1.6 million.

Credit: DappRadar

Many people have written off Binance Smart Chain, but going into turbulent markets, $BNB may be the play for 2022. Despite concerns around centralization, the market will be looking for fundamentals, and there is arguably no chain with better current fundamentals than BSC.

Staying Power Displayed in 2021

They have the exchange, the users, the marketing, the dApps, and the market share to smoothly cruise through any bear market. While the centralized exchange is not factored into the above metrics, it still is crucial to the brand recognition and overall strength and stickiness of Binance.

Binance Chain made a huge run-up in DeFi to begin 2021, and suddenly, the market began to favor other L1’s. However, in light of that, the staying power of Binance in DeFi has been more than impressive. As seen below, their TVL has not been below 10 billion since their rise in April, and has increased since the summer bear; sitting now at ~22 billion.

Credit: DeFiLlama

Considering that Solana, Avalanche, Terra, Harmony, and Fantom all stole the show and rose to billions in DeFi TVL after Binance, their ability to maintain users is incredibly bullish. BSC has ingratiated itself within DeFi and has a stickiness that only itself and Ethereum have proved for the long-term.

Moreover, while being up 1,000% YTD is nothing to turn up your nose at, relative to the aforementioned L1’s, BNB still has potentially a lot of room to grow. One could even argue BNB is due for a big pump, but of course, the entire market is still licking its wounds.

New Token Burning Mechanism

Lastly, the token burning mechanism that Binance introduced last week will be a huge boon to holders. BNB tokens will now be burned continuously rather than quarterly. Last quarter, 1,335,888 BNB was removed from circulation. This new auto-burn will also “provide greater transparency and predictability to the BNB Community.”

Below is a graph Binance released of how the burn will be implemented, which depends on the price of $BNB. The good part about this burn is that when the price goes down, more tokens are burned, and if it goes up, fewer are burned. This is good for holders all around, as the price of BNB is set to remain stable in a downturn. 

Credit: Binance

With all the hype around other smart contract platforms, considering the above information, it would be foolish to ignore Binance, which has quietly hummed along and is set to continue its ascent.

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