BNB Chain volume rose 65% between April and May

Quick Take

  • BNB Chain volume on decentralized exchanges increased 65% between April and May of 2023. 
  • A potential explanation could be Pancakeswap’s new update, which gave more flexibility to liquidity providers.
  • Another cause could be holder nervousness after the SEC sued Binance. 

BNB Chain volume saw a notable increase on decentralized exchanges in the last two recorded months. 

BNB Chain exchange volume was $11.79 billion in April and $19.52 billion in May — a 65.3% increase worth $7.73 billion, according to data compiled by The Block Research. 

Graph depicting the increase in BNB Chain volume from The Block Pro Research.

"A big part of the reason BNB chain has seen an increase in DEX market share is Pancakeswap’s upgrade to V3 in April, which shifted the AMM to a concentrated liquidity model similar to Uniswap V3 and generally gives a lot more flexibility to liquidity providers," says Kevin Peng, a research analyst at The Block Research. "It basically allows them to set price ranges that are more in line with current prices across the market. Over the past week alone, Pancakeswap V3 has done around $900 million in volume with only about $230 million in liquidity."

"It's hard to say definitively if it represents a broader shift away from centralized exchanges — the largest being Binance — but it does coincide with a period in May where DEX volumes as a percentage of CEX volume reached an all-time high," Peng said. 

BNB Chain is a blockchain launched by the crypto exchange Binance. After a June 5 lawsuit from the Securities and Exchange Commission, some BNB holders appear to be selling their tokens, such as a crypto whale who sold off $2.3 million worth of BNB on June 12.

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