Whales Drive NFT Comeback on BNB Chain in Q3
Nov 8, 2024
2 min read
Non-fungible tokens (NFTs) have made a significant comeback on the BNB Chain in the third quarter of 2024, with trading volumes surging by 283%. This resurgence is primarily attributed to large investors, often referred to as "whales," who have dominated the market despite a decline in the number of average daily buyers.
Key Takeaways
NFT trading volumes on BNB Chain increased by 283% in Q3, averaging $600,400 daily.
Average daily sales rose by 47% quarter-on-quarter, totaling 8,900.
Average daily buyers fell by 53% to 2,300, indicating whale-driven activity.
BNB Chain's total NFT trading volume reached $55.2 million in Q3.
Despite the NFT surge, BNB Chain's overall revenue dropped by 27.9% to $34.9 million.
NFT Trading Volumes Surge
According to blockchain analytics firm Messari, the BNB Chain experienced a remarkable increase in NFT trading volumes, with a daily average of $600,400. This figure represents a 283% increase compared to previous quarters. The average daily sales also saw a notable rise, climbing 47% quarter-on-quarter to reach 8,900 sales.
However, the report highlighted a concerning trend: the average daily number of buyers plummeted by 53% to just 2,300. This suggests that the NFT market's resurgence is largely driven by a small number of high-value transactions from whales, rather than widespread participation from smaller investors.
Comparison With Other Chains
Despite the impressive growth on the BNB Chain, its NFT trading volume still lags behind other major blockchain networks. In the last 30 days, Ethereum recorded $120.7 million in trading volume, while Bitcoin followed with $74.6 million. Other chains like Solana, Mythos, Polygon, and Immutable also surpassed BNB Chain in trading volume during the same period.
Mixed Performance Metrics
While the NFT market on BNB Chain thrived, other performance metrics painted a mixed picture. The total revenue for BNB Chain fell by 27.9% quarter-on-quarter to $34.9 million, primarily due to a 27% decline in gas fees associated with decentralized finance (DeFi) transactions. Additionally, the average daily active addresses on the BNB Chain decreased by 19% to 900,000, and average daily transactions fell by 8.1%.
Total Value Locked and Tokenization Services
On a positive note, the total value locked (TVL) on the BNB Chain increased by 2.2% to $4.8 billion in Q3. The algorithmic money market protocol Venus Finance was a significant contributor to this growth, with its TVL rising by 13% to $1.79 billion.
In a bid to enhance its offerings, BNB Chain recently launched a new real-world asset tokenization service. This service aims to simplify the process of tokenizing real-world assets, allowing individuals and businesses to do so without coding knowledge, thereby lowering the barriers to entry.
Conclusion
The resurgence of NFTs on the BNB Chain in Q3 2024 highlights the growing interest from large investors, despite challenges in attracting smaller participants. As the NFT market continues to evolve, the BNB Chain's ability to innovate and adapt will be crucial in maintaining its competitive edge in the rapidly changing landscape of digital assets.
Sources
Whales drive NFT comeback on BNB Chain in Q3: Messari, Cointelegraph.
NFTs Are Rising Again After Trump Victory – Here’s The Top Selling NFTs This Week, InsideBitcoins.com.