Layer by Layer: BNB Chain Solidifies its DeFi Market Share

The BNB Chain ecosystem has entered the spotlight in recent weeks as a public feud between the leadership of two major exchanges, Binance and FTX, spiraled into a bank run on FTX that led to its eventual collapse. Recently, we looked at the effects of FTX’s insolvency on Solana, which were compounded by FTX and crypto trading firm Alameda’s extensive involvement in providing funding, liquidity, and infrastructure in the ecosystem. Today, we will dive into the latest data from the BNB Chain ecosystem, whose symbiotic relationship with Binance can be seen as analogous to the former relationship between FTX/Alameda and Solana. 

One of the unusual side effects of the FTX collapse was the emergence of broad fear among market participants that fiat-backed stablecoins such as USDC, USDT, and BUSD would lose their peg with the U.S. dollar. This uncertainty is evident in the price of USDT, which fell to a year-to-date low of about $0.994 on November 10th.