In terms of DeFi, BNB Chain saw a 93% decline from Q3 of 2021 but has since seen steady improvement.
Parts of the crypto ecosystem began to show signs of recovery in the third quarter of 2022 after a year of battling market bears. Decentralized finance (DeFi) and crypto trading volumes have grown significantly, according to BNB Chain’s Q3 report, however trading of nonfungible tokens (NFT) has decreased.
BNB Chain maintained its position as the second-largest DeFi blockchain behind Ethereum, according to DappRadar’s BNB Chain Report Q3, with a total value locked (TVL) of $7.6 billion.
In terms of DeFi, BNB Chain saw a 93% decline from Q3 of 2021 but has since seen steady improvement. The TVL of $7.6 billion is a 28.67% improvement over the Q2 results of BNB Chain. Additionally, the blockchain holds 36.6% of the market for GameFi ecosystems, followed by Polygon (11.8%) and Ethereum (20.2%).
The largest among the more than 300 DeFi decentralized apps (DApps) hosted over BNB Chain include PancakeSwap, Venus, and Alpaca Finance.
According to the report, “BNB chain owes this relative success to the performance of PancakeSwap,” as the ecosystem accounts for 68.2% of TVL or $4.1 billion. Venus is second with 16.3% ($995 million), and Alpaca Finance is third with 8.7% ($530 million).
NFT trade volumes are further declining, with BNB Chain reporting a nearly 33% decline this year, from $276,000 in the first quarter to $185,000 in the third. The number of unique traders reportedly fell by 45% in just three months, according to the research.
The DappRadar report’s measurements reflect a generally good trend for the quarter, but they also make clear the need for cryptocurrency initiatives to achieve long-term success.
DeFi gained traction in Singapore after major financial institution DBS Bank agreed to use the technology for the country’s central bank.
DBS announced the start of testing foreign currency (FX) and government securities trading using authorized, or private, DeFi liquidity pools on November 2.
A DBS representative acknowledged the use of Polygon mainnet utilizing a fork of the Uniswap v2 protocol in an interview with Cointelegraph regarding Project Guardian, a government initiative to investigate digital asset tokenization on public chains.