Layer-1 chains have shared the carnage over the first half of 2022, which is not surprising. The current market conditions have made it difficult for the top L1s like BNB to maintain their positions.
As of this writing, the top L1 chains are Ethereum, BNB Smart Chain, and Solana. BNB appears to have suffered the most from its November all-time highs, however (ATHs).
BNB Carries the Weight
Ethereum and Solana, two other leading chains, have made similar attempts to escape. Both of these smart-contract platforms have built up a large ecosystem that can be rolled back to ATHs if necessary.
The BNB Chain, on the other hand, cannot now claim the same. At the time of this writing, the BNB token is down over 60% from its all-time high of $654.32 to $260.32. Market relief is to blame for the current surge in the token’s value. It’s not just that the token isn’t performing as well as it should.
Due to its size and resources, Binance has a firm grip on the cryptocurrency market. When crypto winter was at its worst, BNB was steadfastly maintained by the BUSD stablecoin. BNB’s network activity has fallen significantly more than that of its rivals, according to the latest data from CoinMarketCap.
Since their all-time highs in early November 2021, BNB Chain has had the poorest showdown among the three chains. As compared to the day of its ATH, its daily transactions are down 582.2%, whereas Solana and Ethereum are down 18.1% and 13.7%, respectively.
The daily active addresses on these chains reveal a shift in prophecy’s accuracy over time. Due to its ecosystem’s proliferation, Solana has shown a 20.4 percent increase in active addresses.
BNB, on the other hand, has seen its value fall by 68.8% since November 2021. Over the same period, Ethereum’s active address growth has decreased by 27.2 percent.
A Glimmer of Hope
BNB’s utilization by the top 400 BSC whales has increased significantly, notwithstanding recent drawdowns. The use of smart contracts has increased by 100 percent in the last 24 hours.
As whale activity dominates market movement, this is a reliable measure for evaluating the chain’s utility.
It’s quite improbable that BNB Chain will be able to keep up with the other chains as they soar to new heights. This month’s relief crypto rise necessitates a major overhaul of the BNB Chain.
