BNB Chain 2023 Overview: Reduction in Crypto Losses While DeFi, DePin and AI+Web3 Rise
In Brief
BNB Chain released an overview of its 2023 performance, accomplishing a substantial decrease in crypto asset loss and other milestones.
Blockchain network BNB Chain by crypto exchange Binance released a comprehensive overview of its 2023 accomplishments, emphasizing its latest milestones and disclosing security event data that transpired throughout the year.
Concluding 2023, Binance Smart Chain (BSC) managed 32 million daily transactions, attaining a peak throughput of 2,000 transactions per second. BSC has emerged as one of the most dynamically utilized Layer 1 blockchains, boasting approximately 1 million Daily Active Users (DAUs). As the third-largest Layer 1 protocol by market capitalization, BSC demonstrated notable advancements across various metrics in the fourth quarter of 2023, highlighting the vitality and productivity of its ecosystem.
Furthermore, BSC showcased its capability to manage substantial activity volumes, with daily transactions on the network witnessing a 35% annual growth. BSC effectively raised its gas limit to 140 million, exceeding Ethereum‘s capacity by 4.6 times.
Meanwhile, opBNB, a Layer 2 scaling solution for the BNB Smart Chain powered by Optimism OP Stack introduced last year, set a new historical record in the fourth quarter, handling 71 million daily transactions with a swift throughput of 4,500 transactions per second. As of the conclusion of 2023, opBNB solidified its position as the most active Layer 2 blockchain and continues to maintain the highest number of DAUs among Layer 2 networks in 2024.
As a notable achievement in 2023, BNB Chain’s gas fees burned, a pivotal indicator of network activity, witnessed a 21% increase between the third and fourth quarters of 2023.
The decentralized finance (DeFi) ecosystem achieved a total locked value (TVL) of $4.6 billion by the end of 2023, experiencing a quarterly year-on-year growth of 33%. Additionally, the project team emphasized its further commitment to supporting high-frequency DeFi, full-chain gaming, AI and Web3, DePIN, and other sectors.
Reduced Hacking and Fraud Crypto Losses
In 2023, BNB Chain significantly diminished its overall losses attributed to hacking and fraud, marking an 85% reduction compared to the preceding year. In 2023, BNB Chain disclosed losses of only $161 million compared to over $1.1 billion in stolen assets in 2022.
The BNB Chain Core Development Team credits reducing financial losses to implementing AvengerDAO’s rapid alert system. In 2023, this system produced around 3,500 Red Alarm notifications and 330 alert tweets to alert community members about potential risks.
Despite the decrease in overall losses, the number of security incidents on the BNB Chain experienced a 44% year-on-year increase, with 414 incidents reported in 2023. Among these incidents, 315 were related to DeFi projects. However, the final quarter of 2023 showed significant improvement, witnessing a 64% decrease in fiat losses compared to the third quarter.
While the decrease in losses is a positive development, the BNB Chain continues to encounter persistent challenges, with hacks constituting 50.72% of incidents in 2023 and scams closely following at 49.03%. The former resulted in $73.2 million in losses, marking a 91% decrease, while scams led to $87.9 million in losses, representing a 54% decrease from the previous year.
As BNB Chain reflects on its robust 2023 achievements, despite the positive trends, the team behind the blockchain remains vigilant in addressing persistent malicious activities.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
