Binance Smart Chain: Q2 2021 Overview

BSC continues to be the leader in terms of unique active wallets averaging 421,854 in Q2.

During 2021’s second quarter, Binance Smart Chain (BSC) has solidified itself as one of the top blockchains in the industry. BSC is currently the most utilized blockchain in the industry and hosts Pancakeswap, the most used dapp across all protocols. Moreover, the blockchain is creating more dapps than ever before and currently lists 1,464 dapps on DappRadar. 

Table of Contents

• Key takeaways
• BSC becoming a force in the blockchain industry
• Closing the gap with Ethereum, PancakeSwap belongs to a different league
• DeFi competition in the Binance Smart Chain heating up 
• NFT landscape in BSC
• NFTs being boosted by added utilities
• Games already generating impact 
• In summary and road ahead

Key takeaways

• BSC is the most used blockchain; 421,000 daily UAW on average during Q2, 400% higher than the previous quarter
• TVL in BSC grew by 28.9% despite a dip in crypto prices and other challenges
• PancakeSwap is the most used dapp across all blockchains, attracting more than 5 million unique wallets whilst garnering $1 trillion in total volume. 
• BakerySwap collectibles selling as high as $458,000 during June
• Mobox leads the GameFi movement with more than 22,600 unique users in June, currently holds more than $100 million in TVL

BSC has become a force in the blockchain industry

The blockchain industry is undergoing an impressive growth trend and BSC is one of the main drivers behind the surge. The network is currently the most utilized blockchain. The Binance network has seen its daily unique active wallet average rise an impressive 409% QoQ averaging 421,854 UAW per day during Q2. 

Overall, BSC hit a record 1.02 million UAW on May 12th alone. Along with record usage during Q2, BSC experienced a 134% uptick in sales volume from the previous quarter, generating $7.29 billion in the same period. 

Closing the gap with Ethereum, PancakeSwap belongs to a different league 

Although Ethereum is still the leading blockchain in terms of TVL, BSC has established itself as a DeFi referent, narrowing the gap significantly in the last three months. The TVL in Binance Smart Chain has increased by 28.87% quarter-on-quarter despite facing several challenges during May, specifically the crypto crash and the Venus liquidation. 

As of June 30, BSC’s TVL was close to $25 billion. Approximately, 28% was driven by PancakeSwap, BSC’s crown jewel. The DEX governed by the CAKE token surpassed $7 billion in TVL, increasing 32.8% quarter on quarter. As a reference, PancakeSwap TVL numbers are still higher than premier Ethereum DeFi dapps like Uniswap, Compound, and MakerDAO.

DeFi competition in the Binance Smart Chain heating up

While PancakeSwap deserves to be in the major league, other BSC DeFi dapps cannot be overlooked. For instance, Autofarm, the automated yield farming DEX aggregator, has become the second most used dapp in BSC, whilst driving the second most generated volume as well. With attractive pool pairs that enable auto-farming, the dapp is attracting more users recently. During June alone, Autofarm allured 20,800 daily unique wallets on average, a 252.8% increase month-over-month and a 395.7% quarter-over-quarter. 

Automated yield optimizer Pancake Bunny and AMM Apeswap have also been amongst the most used BSC dapps. During Q2, Bunny attracted more than 13,500 daily UAW on average, although the latest trends may show a slight cooldown. Apeswap is not much different, having attracted around 7,500 daily UAW on average during the same time. 

Newer competitors like Biswap and Rabbit finance are also enjoying a positive response. For instance, Biswap, another yield farming DEX aggregator, is now among the most used dapps in the chain and the fourth in volume generated within the network, alluring 9,650 unique daily wallets on average whilst generating more than $2.47 billion in volume during June alone. Nevertheless, it is still far in terms of TVL from other BSC dapps.

Rabbit Finance is another recent but engaging project. The cross-chain lending protocol generated an impressive $2.4 billion in volume over the last 30 days. By helping users optimize their investments, the Rabbit dapp has surpassed $1 billion in TVL at the time of this writing, a good indicator for the dapp’s outlook.

With a myriad of options, it is probable that some of BSC’s dapps begin experiencing some kind of cooldown period. However, those dapps that can find a perfect mix between secure and innovative products along with attractive yields will survive the latest blizzard of BSC yield aggregators. 

NFT landscape in BSC

It is true that the DeFi space dominates the scene in BSC; however, NFT and games are slowly gaining relevance within the network. For instance, NFTs and corresponding marketplaces generated $123 million in Q2, a 993% increase from the previous quarter.

On top of that, Binance launched the Featured by Binance NFT Marketplace on June 24, adding another important layer in the already massive ecosystem. Taking advantage of low transaction fees and fast processing times, the marketplace aims to replicate Binance DeFi success with another solid option.

NFTs being boosted by added utilities

Recent media attention has focused on diminishing the NFT space, yet in-depth numbers tell a different story. Notwithstanding an established avatar market led by Ethereum, the latest NFT trends may already be taking place in BSC. 

NFTs are being utilized in different manners to provide owners with an added utility. A clear example of this tendency can be found in BakerySwap. BakerySwap is an all-in-one platform that combines AMM elements with a complete NFT marketplace. Collectibles acquired in the platform can be used for staking, trading, or playing.

BAKE’s NFTs have been among the most expensive NFT sales recently. BakerySwap Combo #128 was sold last June for 115,000 BAKE or $458,000 approximately, further supporting the thesis of added utility in NFTs.

NFTs being boosted by added utilities

GameFi is another way of boosting NFTs’ added value. Gamification of DeFi or GameFi is a surging trend that combines the traits of DeFi,  with playable NFTs, allowing players to manage their in-game assets in different manners such as yield generators or simple collectibles with unique properties.

Mobox is one of the best dapps to employ a GameFi structure. It allows users to stake the platform’s liquidity tokens to obtain rewards in the form of yield farming tokens called KEYs. KEYs can be then used to unlock NFTs that can be used as playing characters or as staking assets in the MOBOX platform. 

Mobox attracted over 22,600 unique wallets whilst generating over $57 million in total volume in June alone. Moreover, Mobox has locked more than $107 million in TVL at the time of this writing. 

It is too early to draw any conclusion but the future seems bright. A cross-chain bridge that will support NFT interoperability with other dapps and even other blockchains is expected in the upcoming months.  With such a powerful NFT integration alongside the expansion of added utilities, Mobox expects to replicate Pancake’s success in the gaming space.

In summary and road ahead

BSC’s DeFi space goes through PancakeSwap, a premier DeFi dapp in the whole industry. It is also encouraging that the next tier of projects is starting to provide engaging competition. With the surge of projects like Autofarm, along with newer dapps like Biswap and Rabbit Finance. It is worth monitoring their performance and finding out which dapp will achieve adoption, which will be the volume generator, and which will fall into oblivion. 

BSC has already challenged Ethereum in DeFi and hopes are running high for the Featured marketplace. The Binance platform offers alternatives that include digital pieces from regional and legendary artists, exclusive auctions, and NFT mystery boxes events. Only time will tell whether the new competition can match established marketplaces that have become a referent for the industry. 

All in all, the Binance Smart Chain looks as competitive as ever. Despite facing several challenges like the Venus liquidation or the Garuda exploit, the network still leads the industry in terms of usage. With a myriad of interesting DeFi projects and a boost in the NFT space with the launch of the Featured marketplace, it will be worth watching how BSC performs in the upcoming months.

.mailchimp_widget {
text-align: center;
margin: 30px auto !important;
display: flex;
border-radius: 10px;
overflow: hidden;
flex-wrap: wrap;
}

.mailchimp_widget__visual img {
max-width: 100%;
height: 70px;
filter: drop-shadow(3px 5px 10px rgba(0, 0, 0, 0.5));
}
.mailchimp_widget__visual {
background: #006cff;
flex: 1 1 0;
padding: 20px;
align-items: center;
justify-content: center;
display: flex;
flex-direction: column;
color: #fff;
}

.mailchimp_widget__content {
padding: 20px;
flex: 3 1 0;
background: #f7f7f7;
text-align: center;
}

.mailchimp_widget__content label {
font-size: 24px;
}

.mailchimp_widget__content input[type=”text”],
.mailchimp_widget__content input[type=”email”] {
padding: 0;
padding-left: 10px;
border-radius: 5px;
box-shadow: none;
border: 1px solid #ccc;
line-height: 24px;
height: 30px;
font-size: 16px;
margin-bottom: 10px !important;
margin-top: 10px !important;
}

.mailchimp_widget__content input[type=”submit”] {
padding: 0 !important;
font-size: 16px;
line-height: 24px;
height: 30px;
margin-left: 10px !important;
border-radius: 5px;
border: none;
background: #006cff;
color: #fff;
cursor: pointer;
transition: all 0.2s;
margin-bottom: 10px !important;
margin-top: 10px !important;
}

.mailchimp_widget__content input[type=”submit”]:hover {
box-shadow: 2px 2px 5px rgba(0, 0, 0, 0.2);
background: #045fdb;
}

.mailchimp_widget__inputs {
display: flex;
justify-content: center;
align-items: center;
}

@media screen and (max-width: 768px) {
.mailchimp_widget {
flex-direction: column;
}
.mailchimp_widget__visual {
flex-direction: row;
justify-content: center;
align-items: center;
padding: 10px;
}
.mailchimp_widget__visual img {
height: 30px;
margin-right: 10px;
}
.mailchimp_widget__content label {
font-size: 20px;
}
.mailchimp_widget__inputs {
flex-direction: column;
}
.mailchimp_widget__content input[type=”submit”] {
margin-left: 0 !important;
margin-top: 0 !important;
}
}