BNB Chain’s Rise and the Activation of the MEME Track Competition Landscape

4. SHELL: Chain Staking Activity Triggers a Capital Siphon
On February 13, BNB Chain, in collaboration with Binance Wallet and PancakeSwap, launched a public offering event for MyShell token SHELL. Backed by Binance Labs’ investment background, the event oversubscribed by 105 times, attracting over 130,000 BNB for subscription. This event not only boosted BNB Chain’s popularity but also drainage Binance Wallet.

III. Analysis of BNB Chain’s Current Situation and Future Challenges

1. Competitive Analysis

BNB Chain vs. Solana

According to Nansen’s on-chain data, since early February when CZ drove traffic to BNB Chain through high-frequency tweets, the chain’s active address count has shown explosive growth. On February 18, the single-day active address count exceeded 2.8 million, setting a historical peak in the past 12 months, while Solana’s active address count declined by 36% during the same period. However, Solana’s daily active address count still remains above 4 million.(Data Source: Nansen)

Four.meme vs. Pump.fun

According to Dune’s data, Pump.fun platform maintained a monopoly position with over 100,000 new accounts per day before February due to its first-mover advantage. However, with Four.meme leveraging the traffic dividend from the BNB Chain ecosystem, the industry landscape has undergone a significant reshuffle. By February 17, Pump.fun’s new account count had halved to 50,000/day, while Four.meme’s count soared from less than 500 to over 20,000/day. Although Four.meme’s current scale is only 40% of Pump.fun’s, its weekly growth rate of 325% has made it one of the important MEME launch platforms.

2. BNB Chain Drives a New Round of MEME Fever in the Short Term

More significantly, on February 14, when CZ disclosed the pet dog “Broccoli,” causing a frenzy of imitation tokens, BNB Chain’s network Gas fees surged to $0.43 in an instant, setting a new high since January 2022. This data confirms the success of CZ’s traffic diversion strategy, bringing new active users to the previously sluggish BNB Chain. Combining CZ’s recent actions and BNB’s innovative plans, it can be inferred that MEME will be one of the main development goals for BNB Chain in 2023. Currently, under the influence of Binance’s traffic, BNB Chain has initiated the first phase of MEME fever. In the current market lacking new narrative drivers, BNB Chain may continue to rely on MEME token popularity to maintain market attention, and high-return MEME projects may still emerge in the BNB Chain ecosystem in the short term.

3. Future Challenges

However, BNB Chain faces multiple challenges in replicating Solana’s MEME fever. The main challenge is the recent trust crisis in the MEME track. Due to MEME tokens launched by Trump and Argentine President couples causing significant user losses, frequent token launches by presidents and celebrities have harvested a large amount of liquidity from the crypto market and severely damaged market confidence. It may be difficult to restore investor trust in the future. Additionally, the current crypto market is affected by Trump’s transaction cooling down, macroeconomic conditions, and policies, showing a general trend of continuous volatility and downward movement. Following the Adjustment of BTC, altcoins have experienced significant declines. Previously popular Ai Age tokens have also seen significant price drops.

4. Potential Impact

With BNB Chain regaining market attention through strategic upgrades and the MEME craze, Solana, which previously dominated the MEME sector almost single-handedly, now faces a new competitor. The rapid rise of the BNB Chain has put unprecedented competitive pressure on Solana, potentially driving it to accelerate technological upgrades and ecosystem reforms. Furthermore, BNB Chain’s success has demonstrated new opportunities for other blockchain ecosystems. More chains may adopt BNB Chain’s “event-driven marketing + technical upgrades + wealth effect” strategy to promote their own ecosystems, potentially sparking a new wave of market enthusiasm.

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Risk Warning

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