BNB Chain, a Layer 1 blockchain project associated with crypto exchange Binance, has seen a rise in transactions — its highest since last May — thanks to its lower fees and increasing adoption.
The average number of transactions on BNB Chain hit 4.8 million on May 22 using a seven-day moving average — a level last seen in May 2022 — according to The Block's Data Dashboard. BNB Chain is ranked number one by that metric, among other Ethereum Virtual Machine (EVM)-compatible blockchains, including Polygon and Avalanche.
The rise of BNB Chain can be attributed to several factors, according to Arnaud Bauer, a senior blockchain solution architect at BNB Chain. Bauer told The Block the blockchain's low transaction fees, high throughput, or number of transactions per second, and adoption by DeFi and gaming projects have helped achieve a high transaction count.
"Activities such as NFT minting, token transfers, and claimings have become more attractive thanks to BNB Chain's cost-effective transaction fee," Bauer said.
Arnaud Bauer on BNB Chain outlook
Bauer expects the trend to continue as BNB Chain provides optionality to both projects and end users. "On one hand, projects can leverage the high-throughput environment to build robust platforms and, on the other hand, users are more incentivized to engage within their communities due to lower transaction costs," he said.
"However, it is imperative for the BNB Chain developer community to continually monitor and adapt to the evolving demands to ensure long-term growth and success of the entire BNB ecosystem," Bauer said.
BNB is currently the fourth-largest crypto token in the world with a market capitalization of nearly $50 billion, according to CoinGecko data. The price of BNB is currently trading at around $314, down 1.6% over the past 24 hours.
BNB Chain is not the only Ethereum Virtual Machine (EVM)-compatible blockchain benefiting from consistently high gas fees on Ethereum. As The Block reported earlier this month, daily new unique addresses of EVM-compatible blockchains, including Polygon and Avalanche, peaked at 6.77 million last month — a level not seen before 2021.
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