BNB Chain surged into the first quarter of 2024 with significant growth, according to an April 24 report from Messari. The platform's market capitalization increased impressively to $92.5 billion, reflecting an 89% quarter-over-quarter growth. 

This performance placed BNB as the third-largest cryptocurrency in terms of market cap, trailing behind Ethereum and Bitcoin, which remained in the first two positions.

Revenue Highlights

In the first quarter of 2024, BNB Chain experienced a remarkable increase in revenue, achieving $66.8 million, which is a 70% rise from $39.2 million in the previous quarter. This milestone also marked the highest revenue quarter since its inception. 

The increase was primarily driven by the appreciation in BNB's price. Although the revenue calculated in BNB tokens showed a modest 2% increase from 162,600 to 166,500 BNB, the impact in USD was significant.

Decentralized Finance (DeFi) transactions continued to be the largest revenue generator for the chain. In Q1, DeFi contributed 76,200 BNB in gas fees, marking a 1.7% rise from the 74,900 BNB recorded in the last quarter of the previous year. This sector constituted 46% of the total revenue. 

Meanwhile, revenue from stablecoin transactions notably increased by 29% from 19,500 to 25,100 BNB, reflecting the growing use of stablecoins on the platform. 

However, sectors like Gaming and Infrastructure witnessed declines, with Gaming dropping a significant 67% from 9,700 to 3,200 BNB, and Infrastructure revenues falling by 9% from 9,900 to 9,000 BNB.

Supply Dynamics

Originally, BNB had a total token supply of 200 million at its launch in July 2017. The supply mechanics of BNB are designed to be deflationary through several burning mechanisms.

By the end of Q1 2024, the circulating supply of BNB had decreased to 153.9 million tokens. The deflationary approach resulted in a negative annualized inflation rate of 2.9%, a 30% increase from the previous quarter, showcasing the aggressive deflationary tactics BNB Chain employs.

Network Activity and Security

Average daily transactions on the BNB Chain saw a decrease in Q1, falling by 9% from 4.6 million in Q4 2023 to 4.2 million. This decline was primarily attributed to a reduction in inscription-related activities. 

Nevertheless, the network's health remained robust, with average daily transactions still up 27% year-over-year from 3.3 million. Daily active addresses saw a 26% increase from 1.0 million to 1.3 million, indicating healthy user engagement.

Security remains a cornerstone of the BNB Chain, utilizing a Proof-of-Staked Authority (PoSA) consensus mechanism. The network consistently maintained 40 validator nodes, ensuring decentralized security and operational efficiency. 

The total amount of BNB staked rose by 6% to 23.4 million, with the dollar value of staked BNB surging by 101% due to the token's price appreciation, demonstrating increased confidence in the network’s stability and future.

Technical Developments

The quarter was marked by several critical upgrades aimed at enhancing the chain’s functionality and security. 

The BNB Greenfield Manchurian Hard Fork on January 16 introduced new features and bug fixes, improving the overall resilience of the network. The BNB Smart Chain Kepler Hard Fork followed on January 23, implementing several Blockchain-specific proposals (BEPs) that aimed to streamline smart contract operations and reduce operational costs. Further, the BNB Greenfield Ural Hard Fork on March 14 brought additional enhancements, particularly in cross-chain operations and account permissions.

Looking ahead, the BNB Chain plans to sunset the BNB Beacon Chain, which will consolidate its staking and governance mechanisms into the main BNB Smart Chain. 

$BNB is trading at $602, up 11% over the last seven days, as of writing.