Crypto whales significantly boosted NFT trading activity on the BNB Chain during the third quarter of 2024. Messari’s latest quarterly report highlights a 283% quarter-over-quarter increase in average daily trading volume, which soared from $156,900 in Q2 to $600,400 in Q3.
Despite this growth, retail participation saw a sharp decline, pointing to larger trades driven by smaller market participants.
Rising NFT trading volume contrasts with declining buyer numbers
The report reveals that while NFT trading volumes on the BNB Chain experienced remarkable growth, the number of unique daily buyers decreased significantly. The average daily buyer count dropped by 53% to 2,300 users during the quarter. However, daily NFT sales rose by 47% to 8,900 transactions. This divergence suggests that whales executed more frequent and higher-value trades, driving activity despite lower retail involvement.
BNB chain faces market pressures amid DeFi resilience
Source: Messari
The BNB Chain experienced moderate challenges during Q3, with its native token’s market capitalization falling 4% quarter-over-quarter to $82.79 billion. BNB also ceded its position as the fourth-largest cryptocurrency to Solana. Network revenue dropped 28% in USD, from $48.4 million in Q2 to $34.9 million in Q3. Revenue measured in BNB tokens decreased by 22%, and DeFi transactions accounted for a smaller share of total activity, representing 16% of income.
On the positive side, the DeFi ecosystem remained stable, with the total value locked (TVL) increasing by 2% to $4.85 billion. Venus Finance led the sector’s growth, boosting its TVL by 13% to $1.79 billion, while PancakeSwap, the second-largest protocol, saw a slight 5% decline to $1.64 billion. The two protocols accounted for 71% of the chain’s total TVL.
Technical upgrades strengthen BNB Chain’s ecosystem
BNB Chain implemented critical technical upgrades in Q3, including the Bohr Hardfork, which introduced enhancements to validator operations and block functionality. Security metrics remained strong, with 45 active validators maintaining network stability after the Feynman Upgrade. The total BNB staked increased by 7% to 32.4 million tokens, valued at $18.3 billion.
Additional initiatives such as the Gas-Free Carnival, which eliminated stablecoin transfer fees, and the continuation of the TVL Incentive Program helped bolster adoption and activity on the chain. Despite market challenges, these upgrades and programs underscore BNB Chain’s ability to attract and retain significant capital in a competitive environment.
The post Crypto Whales Drive NFT Activity on BNB Chain with 283% Growth in Q3 first appeared on Coinfea.
