BNB Chain’s Ecosystem Booms, Becoming a Recent Market Hotspot
This article will summarize the key strategies of Binance, CZ, and the BNB Chain in recent times, how Binance Alpha 2.0 ignited last week’s trading frenzy, the performance of Binance and BNB Chain’s ecosystem data, and finally, delve into the potential impacts of Alpha 2.0 on the on-chain ecosystem and the entire industry.
(Background: Binance Alpha 2.0 Launch: Tokens can be traded directly in spot accounts, $TUT skyrocketed by 6 times)
(Background Supplement: CZ’s Dominance: From BNB Meme Coin to Binance Wallet, a Review of the Crypto Tycoon’s Chain Strategies)
Since the beginning of this year, the Solana meme coin craze has completely cooled down, and the cryptocurrency market has recently fallen into pessimistic sentiment regarding the end of the bull market due to overall economic uncertainty. However, the leading cryptocurrency exchange Binance, which had been embroiled in litigation with the U.S. government last year and saw its momentum decline, has regained community enthusiasm and confidence this year, becoming a recent market hotspot.
This rebound seems to have started with Binance founder Changpeng Zhao (CZ) becoming more actively involved in community activities after his release from prison. His “calls” have ignited a series of meme coins such as $TST, $Broccoli, and the recent $Mubarak, drawing significant market enthusiasm and funds towards the BNB Chain.
Binance’s unannounced launch of Alpha 2.0 has further ignited the trading frenzy within the Binance and BNB Chain ecosystems, sparking heated discussions within the community about the chain strategies of Binance and BNB Chain. Some have even suggested that Alpha 2.0 may usher in a new era of CeDeFi (CeFi + DeFi).
Therefore, the following will review the key strategies that Binance (CEX), wallets, and the BNB Chain employed to drive last week’s frenzy, the data performance of Binance and BNB Chain’s ecosystem, and finally discuss the significant impacts that Alpha 2.0 may bring to the on-chain ecosystem and the entire industry.
Extended Reading: CZ Responds to KOL’s Criticism of “Speculating on BNB Chain”: I Really Haven’t Bought Meme Coins, but the Experience of Using Binance Wallet and Trust Wallet is Truly Poor
Binance, BNB Chain, and CZ’s Community Interaction
This month, after the $TST and $Broccoli ignited the BNB Chain meme coin craze cooled down, Binance and BNB Chain jointly executed a combination strategy that successfully raised the enthusiasm again.
On March 12, Binance announced a $2 billion investment from Abu Dhabi investment firm MGX. CZ retweeted and commented “Mubarak” (meaning blessing in Arabic), giving rise to the meme coin of the same name, Mubarak. Subsequently, he bought $TST and $Mubarak with 1 BNB through a BSC donation address for “testing.” CZ’s calls led to $Mubarak’s market cap exceeding $200 million, and Binance took advantage of this to launch perpetual contracts, driving the entire BNB Chain ecosystem’s meme sector to rise together, with new meme coins frequently emerging.
On the 17th, a significant event occurred in the on-chain ecosystem, as OKX announced an urgent halt to its Web3 wallet DEX aggregator due to compliance pressure from the EU’s MiCA regulations. All decentralized exchanges (DEXs) and wallets aimed to seize the opportunity to attract a large number of on-chain players looking for alternatives. On the same day, Binance Wallet announced the launch of a six-month zero trading fee campaign.
Extended Reading: Binance: Full Compensation for Losses Encountered in BNB Chain Limited-Time Orders, Binance Wallet Zero Fees Within Six Months… A Full Push for Meme Season
Binance Alpha 2.0 Connects CEX and DEX
Following this, on the 18th, Binance Exchange unveiled its trump card by launching the “Alpha 2.0” upgrade, expanding the integration between centralized exchange (CEX) and DEX, allowing users to purchase tokens that were originally only available in the Binance Wallet Alpha area directly on the Binance Exchange.
Binance Wallet launched Binance Alpha in December last year as a “selection pool” before listing tokens on Binance, showcasing tokens selected based on Binance’s professional insights that have strong community attention and sustained growth while aligning with key trends in the crypto space, aiming to enhance the transparency of the token listing process on Binance.
Specifically, Alpha 2.0 offers the following core features, making the on-chain trading experience of Alpha area tokens more convenient while further enhancing liquidity and capital efficiency:
- Seamless purchase of on-chain tokens within the Binance Exchange: Users do not need to withdraw assets to an external wallet or create an additional on-chain wallet, allowing for one-stop transactions of on-chain tokens directly within the Binance Exchange, saving the complexity of copying addresses and other on-chain transfer operations.
- Direct use of funds on the trading platform for transactions: Users can trade Alpha tokens using funds in their Binance spot account and capital account, significantly improving the flexibility of fund utilization. (Currently supports trading with USDT and USDC stablecoins; tokens on BNB Chain and Ethereum can be purchased with USDT, while tokens on Solana and Base can be bought with USDC, with more assets expected to be gradually supported in the future.)
Binance Wallet Trading Volume Surges 24 Times, Market Share Approaches 50%
After the launch of Alpha 2.0, Binance Wallet and BNB Chain’s trading volume saw significant surges last week.
According to DUNE data, Binance Wallet’s daily trading volume broke $93 million on the 18th, accounting for over 45% of the total trading volume of all crypto wallets on that day, marking an increase of over 24 times compared to less than $4 million in daily trading volume at the beginning of March. The number of active users peaked at 71,000 on the 20th, accounting for more than 43% of the total active user count of crypto wallets. After OKX paused its DEX, it became the most popular Web3 wallet among users last week.
BNB Chain Tops DEX Trading Volume Champion
Meanwhile, the BNB Chain ecosystem experienced explosive growth in data over the past week, capturing significant market enthusiasm. According to DeFiLlama, Dune data, and Binance Research’s weekly report released on the 21st, key data is as follows:
- Ranked first in public chain DEX trading volume: BNB Chain’s DEX trading volume surpassed Ethereum and Solana from March 15 to 21, hitting a historical high of $14.68 billion.
- DEX Dominance Climbs: BNB Chain’s DEX leader PancakeSwap’s meme coin activities surged, with near 42% growth in trading volume over the past week, exceeding $14 billion, accounting for over 41% of the total DEX trading volume last week, far surpassing other public chains.
- On-chain fees surged: Since March 17, BNB Chain’s daily average on-chain fees have exceeded $1.6 million, reflecting a significant increase in network utilization; PancakeSwap’s revenue in the past week reached $32.6 million, ranking third in total revenue among crypto protocols, only behind Tether and Circle.
- four.meme Launchpad Follows Closely Behind Pump.fun: BNB Chain’s primary meme coin launchpad four.meme recorded a trading volume of $343 million over the past week, surging 631% week-on-week, ranking second among all launchpads, capturing 76% of the trading volume of Solana’s Pump.fun in one week; the on-chain fee income in the past seven days reached…
325 million USD, accounting for 53% of Pump.fun. Cumulative user numbers have surpassed 200,000, with an explosive increase of over 137,000 since the 18th.
BNB Meme Coin Ecosystem Explodes
Within the BNB Chain ecosystem, the meme sector that has listed on Binance Alpha, as well as large-cap infrastructure tokens, have recently demonstrated strong price increases (on-chain Web3 tokens are volatile and carry high risks; please act with caution):
Meme Sector:
$Mubarak: Surged by a maximum of 407,344%, reaching a historical high of 0.225 on the 18th, currently reported at 0.1577 USD, an increase of over 20% in the past 24 hours, with a market cap of 160 million USD.
$Mubarakah: Maximum increase of 59,270%, reaching a historical high of 0.03758 on the 18th, currently reported at 0.0080 USD, an increase of over 42% in the past 24 hours, with a market cap of 8.09 million USD.
$BNB Card: Surged by a maximum of 57,096%, reaching a historical high of 0.0217 on the 21st, currently reported at 0.0067 USD, an increase of over 9% in the past 24 hours, with a market cap of 6.71 million USD.
$TUT: Surged by a maximum of 9,640%, reaching a historical high of 0.06179 on the 20th, currently reported at 0.0244 USD, an increase of over 17% in the past 24 hours, with a market cap of 23.25 million USD.
$TAT: Maximum increase of 86,126%, reaching a historical high of 0.02239 on the 21st, currently reported at 0.0063 USD, an increase of over 29% in the past 24 hours, with a market cap of 3.76 million USD.
Large-Cap Infrastructure Tokens:
$Cake: Increased by over 66% in the past 14 days, currently reported at 2.59 USD (PancakeSwap token, already listed on Binance).
$Form: Doubled from an opening of 1.27 to a historical high of 2.6 USD on the 19th, currently reported at 1.9 USD (Four.meme ecosystem token, already listed on Binance).
How Does Binance Alpha 2.0 Impact On-Chain Ecosystem?
The recent comprehensive explosion of the BNB meme ecosystem, in addition to CZ and He Yi’s significant efforts in the community for the meme sector, can be attributed to the crucial role played by Binance Alpha 2.0, with its influence potentially more profound than we might imagine. While driving Binance’s CeDeFi vision forward, Alpha 2.0 has the massive potential to reshape the entire on-chain ecosystem landscape.
1. Bringing CEX Million-Plus Users into On-Chain Ecosystem
With Binance Alpha 2.0 breaking down barriers between CEX and DEX, users can easily and seamlessly purchase on-chain tokens, making it easier for Binance’s global registered user base of over 260 million to enter the Web3 on-chain world. According to a16z’s estimates from last October, the real number of monthly active on-chain traders is between 30 million and 60 million, while Binance’s user count is 4-8 times higher, indicating a potential growth of on-chain user numbers and liquidity by 4-8 times, injecting new vitality into the on-chain ecosystem.
2. Improving Liquidity Fragmentation Issues and Promoting CeDeFi Construction
Binance Alpha 2.0 allows users to avoid frequent manual transfers between CEX and DEX, significantly reducing liquidity fragmentation and wastage while enhancing trading security and success rates, thus dramatically improving capital efficiency. It can be anticipated that other exchanges will follow suit in launching similar features, further blurring the lines between CEX and DEX, lowering the technical barriers for users to participate in on-chain trading. This trend will promote on-chain trading from niche markets to mainstream adoption, expanding the mainstream acceptance of cryptocurrencies.
3. Redefining On-Chain Competitive Landscape
Since the beginning of this year, Binance has strategically moved closer to the community and embraced on-chain assets, carving out a different winning path through Alpha 2.0. Previously, in the DEX on-chain trading realm, OKX Wallet and GMGN had consolidated a significant market share due to their first-mover advantage and quality user experience, making it difficult for Binance’s web wallet to find a breakthrough. The emergence of Binance Alpha 2.0 has altered the competitive landscape, not only differentiating itself from competitors through selected tokens but also crucially integrating its vast CEX user base, directly bringing on-chain trading into the mainstream market. This CeDeFi innovation strategy presents a possibility for Binance to overtake in the on-chain ecosystem.
4. BNB Chain Ecosystem Booster, Reigniting Meme Coin Craze?
The launch of Alpha 2.0 will further strengthen the ecological development of BNB Chain. As a public chain backed by Binance, BNB Chain can attract more projects to issue tokens on-chain through Alpha 2.0 and leverage Binance’s user traffic for “value discovery.” This positive cycle of mutual assistance is expected to bring more wealth effects to both Binance and BNB Chain, serving as a long-term catalyst for BNB price increases. Additionally, as the Solana meme coin craze has fully extinguished, Binance’s series of major maneuvers in the meme sector, along with Alpha 2.0 bringing in CEX’s hundreds of billions in liquidity on-chain, may usher in a new wave of meme coins this year on BNB Chain.
5. Igniting On-Chain Token Issuance Trend Benefiting Retail Investors
Binance also announced an upgrade to its token listing mechanism this month:
Launching a “Voting for Listing” and “Voting for Delisting” mechanism to enhance community engagement, giving users a greater voice in the token listing process.
Providing a direct opportunity for unique TGE (Token Generation Event) projects to enter the Binance Alpha observation zone.
For project parties, Binance now offers a more transparent and feasible pathway to reach Binance’s user base and main platform, allowing them to issue tokens on-chain (TGE) and gain the favor of Alpha 2.0 through good community operations, ultimately landing on the Binance main platform. This model provides a growth channel for small to medium-sized quality projects, which is expected to attract more project parties to choose on-chain issuance, while also offering retail investors more opportunities to purchase low-priced tokens in early stages.
Conclusion
The launch of Binance Alpha 2.0 is not only a strategic upgrade for Binance but also a significant milestone in the cryptocurrency field. By simplifying the on-chain trading process and bringing millions of users into the on-chain ecosystem, it creates new opportunities for project parties and retail investors, resulting in a win-win scenario. For Binance, this is a key step to solidify its market leadership; for the entire industry, this could be the starting point for on-chain trading to enter the mainstream.
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Reference Sources:
1. https://x.com/riyuexiaochu/status/1902310254907699457
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