BNB’s Ecosystem Pulse – Six Months into 2023: Triumphs, Trials, and the Uplifting Future

BNB's Ecosystem Pulse - Six Months into 2023: Triumphs, Trials, and the Future

We’re already halfway into 2023, and it’s a perfect time to pause and examine BNB Chain’s progress!

The strength of our community has always been rooted in its diversity, relentless pursuit of innovation, and openness to continuous growth and improvement. This blog zooms in on BNB Chain’s DeFi sector trends.

Total Value Locked

Looking at the latest data from DefiLama as of June 6, 2023, it’s evident that BNB Chain’s resilience and performance remain strong. Despite intense competition and market volatility, BNB Chain ranks third in Total Value Locked (TVL). More remarkably, when considering protocols within a Layer 1 blockchain ecosystem with a TVL exceeding $100 million, BNB Chain proudly holds the second position.

Total Value Locked by Different Blockchains

Pareto chart of TVL

An interesting pattern emerges on closer inspection of BNB Chain’s TVL distribution. The DeFi projects, the undeniable champions of blockchain innovation, occupy a significant share of our ecosystem. The top five protocols on the BNB Chain, all DeFi projects, account for 69.8% of the chain’s total TVL. This concentration of TVL within our leading projects signals the robustness of our community, the trust our users place in us, and the unyielding commitment of our developers.

Pareto Chart of TVL on BNB Chain

But like any dynamic ecosystem, we see year-to-date fluctuations in BNB Chain’s TVL. There is a slight drop of -3.2% in BNB Chain’s TVL since the start of the year, and this is primarily due to the drop in TVL by Pancake Swap (-$310 million) and Wombat (-$98 million), signifies an adjustment period. It represents a recalibration of strategies, a realignment of user preferences, and an opportunity for introspection and growth.

Yet, within these challenges, we have seen seeds of great promise and potential sprouting. Several other protocols on the BNB Chain have demonstrated inspiring resilience and growth during the same period:

  • Radiant: +$246 million
  • Venus: +$162 million
  • BETH: +$95 million
  • Thena: +$74 million
  • Solv: +$50 million
  • Gamma: +$43 million

Five of these six protocols were recently launched, signifying that our ecosystem is surviving and thriving. It’s growing, evolving, and continuously attracting innovative projects contributing to its richness and diversity.

Change in TVL

Change in TVL by sub-sectors

As we widen our lens to examine broader market trends, we note that Liquidity Staking has seen the most substantial growth in TVL year to date. It has seen an increase of a staggering $11 billion since January 1, 2023, signifying the rising popularity of this sub-sector.

What is more exciting is that despite the dominant market share of Ethereum in this category. Our market share in the rapidly growing Lending sector has increased from 8.3% to 9.6%, demonstrating our sustained competitiveness and the effectiveness of our offerings in the DeFi space.

2023 also marks the emergence and rapid expansion of a new sector – NFTFi. Since the beginning of the year, this sector has seen its TVL increase an astounding $425 million, a 413% increment. This impressive growth has been largely led by Blur’s Bid-Lending offering ($167 million TVL), BendDAO ($133 million TVL), and Paraspace ($86 million TVL).

BNB Chain’s position in this emerging market segment is particularly noteworthy, as we hold 9% of the market share, with the Solv Protocol contributing $58 million TVL. This demonstrates the BNB Chain’s capability to adapt and thrive in new market trends, ensuring we remain at the forefront of blockchain innovation.

So, where do we go from here?

Our mission is to keep the BNB chain ecosystem robust and vibrant. But this cannot be achieved in isolation. We need your continued participation, support, and innovative ideas.

We call upon all projects, especially those related to DeFi sectors. We provide resourceful developer programs and a comprehensive repository to assist your journey. We are committed to fostering a supportive and inclusive environment for all developers, irrespective of the scale or stage of their projects.

Together, we can drive the BNB Chain ecosystem toward greater success and lead the next wave of blockchain innovation.