Last week (October 19-27, 2021), perhaps the event that Binance Smart Chain announced the new token burning mechanism BEP-95 attracted a lot of attention from the crypto community. This new mechanism has been speculated by many to positively impact the price of BNB. All information about BSC last week will be updated by me and the team right below.
We invite you to participate in the analysis and evaluation of the events of Binance Smart Chain last week.
Overview of the BSC . ecosystem
A different view of the incentives package of Binance Smart Chain
Two weeks ago, Binance Smart Chain made a big splash with its Incentives package worth up to $1 billion. This "Super Giant" stimulus package is predicted to promote the development of BSC's ever-expanding ecosystem.
Is this incentive package really "SUPER HUGE" as it's worth?
I will bring to the table the incentive program of the Binance Smart Chain system ($1 billion). The Binance Smart Chain ecosystem is currently very large and most of them are spread across many different arrays with a very large number of Dapps. BSC's Incentives package mainly focuses on expanding more categories such as DeFi Market Makers, Liquidity Pools (LPs), GameFi and NFTs segments and most likely focusing on the best and best projects to support.
From there, I will get a relative conclusion about the incentives package. Although BSC's package is of great value, it is not really big compared to the size of the BSC ecosystem at the moment ⇒ This leads to one more question:
Is it true that with a large ecosystem like BSC, this stimulus package is just a necessary supplement? And it is impossible not to launch in the context that many other ecosystems also offer incentive packages to attract dapps and developers ?
Because if CZ (CEO of Binance Smart Chain) doesn't launch a promotion in time, it will lose its appeal to developers.
⇒ Developers lack the motivation to create quality products and then contribute back to the ecosystem, they will move to a place with a more attractive environment and stimulus package.
⇒ Users realize the non-breakthrough of products in the BSC system, they will switch to other ecosystems.
However, that is still the current situation, and Binance Smart Chain as the runner-up of the DeFi market with abundant financial potential and the support of CEX Binance will not easily lose its position. worked hard to build this. We need to give BSC more time to test the effectiveness of this Incentives program.
Binance Smart Chain Launches New Protocol BEP-95
Looking to the Ethereum system with the proposal EIP-1559 has a burn mechanism, becoming Ethereum 2.0 - a smart contract platform with PoS mechanism, ie native tokens of Ethereum must be generated to pay rewards to those who help validate transactions. translation and staking to secure the network. However, after applying the burn mechanism with this proposed EIP-1559, the total supply of Ethereum is reduced by ⇒ ETH from an inflationary token to a deflationary token over time.
Similarly, with the new protocol BEP-95 that has a real-time token burning mechanism, more BNB Tokens will be burned, especially as BNB has a fixed total supply and is designed to deflate ⇒ The amount of BNB tokens will be decreasing.
In the future, when BSC develops more, the demand for BNB Token will increase, because the use case of BNB is very large and not only encapsulated in the CeFi market on Binance, but also in the DeFi market where today invest in expansion and development.
According to a simple economic problem, when the supply decreases and the demand for that commodity increases, it is obvious that the price will increase, specifically here the price of BNB Token.
Looking back on the timeline, BSC conducted a token burn from October 2017 to October 2021 which reduced the supply of BNB by nearly 33.4 million tokens, or 19.9%, with a total value of $2.22 billion. . Experiencing 17 burn times (every quarter) is very clearly reflected in the price of BNB.
From the 14th burn onwards, the supply of BNB in the market was scarce and the demand for BNB also increased due to the development of the ecosystem, resulting in the price of BNB growing to an ATH at $691, at that time. April 2021 point.
Binance NFT Launches IGO (Initial Game Offering)
IGO is a form of fundraising for game projects, Metaverse , in-game NFTs and will be the core foundation for the next development of Binance NFTs. Figures show, 50% of NFTs trading volume comes from the contribution of NFT Gaming projects. It seems that the launch of this form of fundraising by Binance NFT is to take advantage of the fertile NFTs trading volume from NFTs Gaming projects.
Radio Caca - Most Valuable Builder III Winner
Radio Caca has been honored as the champion of BSC's MVB program season 3 (September), so the project will receive a lot of financial and media support for the project.
Radio Caca is a decentralized NFT marketplaces project developed on Binance Smart Chain (BSC). At the same time, this is also an intermediary that allows you to own mysterious boxes of NFTs - MPB of Maye Musk (Mother of Elon Musk).
The project is also considered as a means of supporting DeFi and GameFi decentralized finance to serve the core project of the virtual reality universe - The USM Metaverse. The project is very ambitious in building a virtual reality universe that includes a lot of additional satellite projects around.
In addition, Radio Caca also receives great support from major KOLs with influence on social networks such as CZ (CEO of Binance), Maye Musk (Mother of Elon Musk) and Elon Musk. Since then, Radio Caca has attracted many interested people. The long-term vision and roadmap planned to 2035 show thoughtfulness in preparation. In addition, the good investment in communication makes it not too difficult for Radio Caca to receive the MVB III award in September.
Indicators in the BSC . system
About Total Value Locked (TVL)
Over the past two weeks, Binance Smart Chain's Total Value Locked has increased slightly by ~$830 million or 3.55%. In there:
- The sector that has the most attraction is DEXs, ranked second is Lending.
- Sector Derivatives is developing very fast, when TVL reached ATH of $ 2 billion, showing that the attractiveness of this sector is growing.
- Sector Assets also increased TVL 10% this week, bringing the ATH to $4.4 billion.
The most recent week, the TVL index grew by about $1.5 billion to nearly $26.5 billion. And the numbers don't lie, in general, such growth is indeed progress, but insignificant even though BSC has launched incentives package with great value and Burn tokens BEP-95 mechanism .
This further confirms the argument in the past weeks (read more here ) that the cash flow in the BSC ecosystem is in a state of saturation. Temporarily, the above programs are still not enough to retain users.
At the same time, they are tending to smaller ecosystems like Avalanche, Fantom, Celo where programs are promoted to attract new cash flow. In the distant future, effectiveness factors will be considered to reassess the status of the BSC.
New projects on BSC
New projects on BSC last week, including the following names:
- Valkyrio Game - Enjoy & Earn Game.
- MixMarvel - Public Blockchain Game Platform and Content Community.
- Thetan Arena - Blockchain Game genre Free-to-play MOBA.
- Radio Caca - Exclusive manager of Maye Musk Mystery Box (MPB) NFT and DeFi+GameFi vehicle for The USM Metaverse.
- Strips Finance - Decentralized interest rate derivatives.
Analyze each puzzle piece on BSC
Binance Listing
The impact of the MVB III program on the GameFi and NFTs segments has made the Tranchess (CHESS) project benefit and achieve certain success.
On October 22, 2021, Tranchess also received support from the MVB program when it was listed on the Binance exchange. This can give a domino-like impetus to projects that want to be listed on Binance like Tranchess. Thereby, projects will have access to a large amount of liquidity from the exchange, the level of competition will increase and create a positive network effect on the entire BSC ecosystem. You can learn more about the MVB III program here .
CHESS being listed on the Binance exchange can come from the following reasons:
First, Tranchess's performance is quite outstanding , the project has only been put into operation since July 2021, but up to now (after 3 months) there has been a spectacular growth in TVL. from $896 million to $1.9 billion at the time of ATH, which is more than 200% growth. The above index shows that the commitment of investors to such a new project is very high.
Unique product mechanism: Tranchess is a project in the Asset Management segment and has a different operating mechanism from other simple asset management projects like DHedge .
Tranchess allows users to use up to 4 different tokens, and at the same time they support each other in the project's miniature ecosystem, meeting the needs of investors with a wide range of risk and return appetites. from medium to high.
NFT and GameFi
1. DeRace - The First NFT Gaming Project IGO on Binance NFT
DeRace is a project about the Horse Racing ecosystem, allowing you to raise horses with different characteristics. In addition, players can take them to participate in big races, more specifically, you can trade and sell horses in races and make a profit from it.
The fact that DeRace was the pioneer in the new form of fundraising IGO made the collection of 483 NFTs DeRace sold out within 13 seconds, showing the heat of the project with a profit ratio of 4 times the price. release.
2. Multi-chain NFT on Binance NFT
As of October 26, 2021, the Binance NFT marketplace will allow users to trade, deposit and withdraw NFT products between Ethereum and Binance Smart Chains. This is a positive solution for the NFTs market, as the problem of transporting NFTs on two different chains is solved. From there, the circulation and exchange between individuals will be convenient and create momentum for the development of the NFTs trend.
DeFi 2.0
DeFi is already awash with incentives, the cash flow is driving the ecosystem and the pieces within it are growing. However, the cash flow is large, but it reveals weaknesses that make users clam up, such as the concentration of DAO from Uniswap case, or the rapid growth of the liquidity mining program (a form of controversy). pay attention to increase liquidity for the project).
In addition, the issue of overemphasizing the TVL index and the efficiency of money use is also not receiving certain attention from the user community or even large project or ecosystem developers like Binance. SmartChain.
Other ecosystems like Ethereum have Uniswap (V3) with an efficient model of providing liquidity, or Olympus DAO (OHM) with a mechanism to swap LP tokens to get bonds (Bond), reduce farm discharge and create a sustainable source of liquidity. Ethereum has been gradually completing the puzzle towards the DeFi 2.0 trend .
On the part of BSC, this is considered a shortcoming for their ecosystem when they have not really paid attention to the above issues. At the same time, with early recognition and proper investment, this challenge will also be an opportunity for BSC to prove itself as a large player and always present in the hot spots of the DeFi market.
Conclusion
Here are some of the most important takeaways from this week's Binance Smart Chain:
- Tranchess is listed on the Binance exchange and is a highlight of Binance's commitment to the MVB III program.
- Last week's games and NFTs on BSC were mainly about Binance NFT marketplaces that enable multi-chain trading.
- The new mechanism BEP-95 reduces the amount of BNB tokens in the market.
- Binance NFT launches a new fundraising method IGO (Initial Game Offering).
- The $1 billion incentive program package is not enough for a large ecosystem and spans many areas like BSC.
- Trend DeFi 2.0 along with that is the opportunity and challenge for the ecosystem in the coming time.
- The money flow in the Binance Smart Chain system is showing signs of saturation and there is a shift of money flow to smaller ecosystems.
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