BNB Chain Ecosystem Explodes into a Market Hotspot
BNB Chain has become a recent market hotspot. This article will summarize the key strategies of Binance, CZ, and BNB Chain, how Binance Alpha 2.0 ignited last week’s trading frenzy, the performance data of Binance and the BNB Chain ecosystem, 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 Launched: Tokens can be bought and sold directly in spot accounts, $TUT skyrocketed 6 times)
(Background Supplement: CZ’s Dominance: From BNB Meme Coin to Binance Wallet, a Review of the Crypto Tycoon’s Chain Strategy)
This year, the Solana meme coin craze has completely fizzled out, and the cryptocurrency market has recently fallen into a pessimistic sentiment regarding the end of the bull market due to overall economic uncertainties. However, Binance, the leading cryptocurrency exchange that faced litigation with the U.S. government last year and saw a significant decline in momentum, has regained community enthusiasm and confidence this year, becoming a recent market hotspot.
The starting point of this rebound seems to coincide with Binance founder Changpeng Zhao (CZ) becoming more actively involved in community activities after his release from prison. His “shouting orders” ignited a series of meme coins such as $TST, $Broccoli, and the recent $Mubarak, which attracted significant market enthusiasm and capital towards BNB Chain.
Binance’s unexpected launch of Alpha 2.0 has further ignited the trading frenzy in the Binance and BNB Chain ecosystems. The chain strategies of Binance and BNB Chain have sparked heated discussions in the community, with some claiming that Alpha 2.0 will usher in a new era of CeDeFi (CeFi + DeFi).
Therefore, the following sections will outline the key strategies driving last week’s surge from Binance (CEX), wallets, and BNB Chain, the performance data of Binance and the BNB Chain ecosystem, and finally explore the significant impacts Alpha 2.0 may have on the on-chain ecosystem and the entire industry.
Community Interaction of Binance, BNB Chain, and CZ
After the BNB Chain meme coin craze ignited by $TST and $Broccoli this month cooled down, Binance and BNB Chain successfully reignited interest with a series of initiatives.
On March 12, Binance announced a $2 billion investment from Abu Dhabi investment firm MGX. CZ reposted and commented “Mubarak” (which means blessed in Arabic), giving rise to the meme coin of the same name. Subsequently, through a BSC donation address, he purchased 1 BNB of $TST and $Mubarak for “testing.” CZ’s on-the-ground promotion led to $Mubarak’s market capitalization peaking at over $200 million, as Binance took the opportunity to launch perpetual contracts, driving up the entire BNB Chain ecosystem’s meme segment.
On the 17th, a significant event occurred in the on-chain ecosystem when OKX announced it would urgently halt its Web3 wallet DEX aggregator due to EU MiCA compliance pressures, prompting all decentralized exchanges (DEX) and wallets to try to attract a large number of on-chain players seeking alternatives. On the same day, Binance Wallet announced a six-month zero trading fee promotion.
Binance Alpha 2.0 Connects CEX and DEX
Shortly after, on the 18th, Binance Exchange launched its “Alpha 2.0” upgrade, significantly enhancing the connection between centralized exchanges (CEX) and DEX, allowing users to purchase tokens that were previously only available in the Binance wallet Alpha zone directly within the Binance exchange.
Binance Wallet launched Binance Alpha last December as an “observation selection pool” for tokens before they are listed on Binance. It showcases tokens selected based on Binance’s professional insights, those with strong community interest and ongoing growth in attention, and those aligning with key trends shaping the crypto space, aiming to increase the transparency of the token listing process on Binance.
Specifically, Alpha 2.0 enhances the on-chain trading experience of Alpha zone tokens through the following core functions, further improving liquidity and capital efficiency.
- Seamless purchase of on-chain tokens within Binance: Users do not need to withdraw assets to an external wallet or create an additional on-chain wallet to complete on-chain token transactions directly within Binance, eliminating the complexities of copying addresses and other on-chain transfer operations.
- Direct use of funds on the trading platform: Users can trade Alpha tokens using funds from their Binance spot accounts and funding accounts, greatly enhancing the flexibility of capital utilization. (Currently supports trading with USDT and USDC stablecoins for BNB Chain and Ethereum tokens using USDT and for Solana and Base tokens using USDC; more assets will be gradually supported in the future.)
Binance Wallet Volume Surges 24-Fold, Market Share Approaches 50%
After the launch of Alpha 2.0, Binance Wallet and BNB Chain’s trading volume surged significantly last week.
According to DUNE data, Binance Wallet’s daily trading volume surpassed $93 million on the 18th, capturing over 45% of the total trading volume of all crypto wallets that day, a growth 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 over 71,000 on the 20th, accounting for over 43% of the total active users of crypto wallets, making it the most popular Web3 wallet last week after OKX halted its DEX operations.
BNB Chain Tops DEX Trading Volume
At the same time, the BNB Chain ecosystem experienced explosive data growth over the past week, capturing significant market interest. According to key data released by DeFiLlama, Dune Analytics, and Binance Research in their weekly report on March 21, the following key statistics emerged:
- Ranked first in public chain DEX trading volume: BNB Chain’s DEX trading volume exceeded Ethereum and Solana from March 15 to 21, reaching a historic high of $14.68 billion.
- Rise in DEX dominance: BNB Chain’s leading DEX PancakeSwap saw meme coin activities flourish, with trading volume surging nearly 42% in the past week, surpassing $14 billion, accounting for over 41% of total DEX trading volume last week, far exceeding other public chains.
- On-chain fees skyrocketing: Since March 17, BNB Chain’s average daily on-chain fees have surpassed $1.6 million, reflecting a significant increase in network usage; PancakeSwap’s revenue in the past week reached $32.6 million, ranking third in total revenue among crypto protocols, behind only Tether and Circle.
- four.meme launchpad closely follows Pump.fun: BNB Chain’s main meme coin launchpad four.meme saw a trading volume of $343 million in the past seven days, skyrocketing 631% weekly, ranking second among all launchpads, accounting for 76% of the weekly trading volume of Solana’s Pump.fun; the past week’s fee revenue reached…
325 million USD, accounting for 53% of Pump.fun. Total user count surpasses 200,000, with over 137,000 new users since the 18th.
BNB Meme Coin Ecosystem Explosion
In the BNB Chain ecosystem, both the meme section listed on Binance Alpha and large-cap ecosystem infrastructure tokens have recently shown strong surges (on-chain Web3 tokens are highly volatile and risky, please proceed with caution):
Meme Section:
$Mubarak: peaked at 407,344%, reaching a historical high of 0.225 on the 18th, currently reported at 0.1577 USD, with over 20% increase in the last 24 hours, market cap at 160 million USD.
$Mubarakah: maximum increase of 59,270%, reached a historical high of 0.03758 on the 18th, currently reported at 0.0080 USD, with over 42% increase in the last 24 hours, market cap at 8.09 million USD.
$BNB Card: peaked at 57,096%, reaching a historical high of 0.0217 on the 21st, currently reported at 0.0067 USD, with over 9% increase in the last 24 hours, market cap at 6.71 million USD.
$TUT: surged by 9,640%, reaching a historical high of 0.06179 on the 20th, currently reported at 0.0244 USD, with over 17% increase in the last 24 hours, market cap at 23.25 million USD.
$TAT: maximum increase of 86,126%, reached a historical high of 0.02239 on the 21st, currently reported at 0.0063 USD, with over 29% increase in the last 24 hours, market cap at 3.76 million USD.
Large-cap ecosystem infrastructure tokens:
$Cake: over 66% increase in the last 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 contracts).
How Does Binance Alpha 2.0 Affect On-chain Ecosystem?
The recent comprehensive explosion of the BNB meme ecosystem, besides the substantial efforts from CZ and He Yi in promoting the meme section within the community, also highlights the crucial role played by Binance Alpha 2.0, whose impact may be more significant and far-reaching than we imagine. While Alpha 2.0 innovates further to advance Binance’s CeDeFi vision, it possesses tremendous potential to alter the future landscape of the entire on-chain ecosystem.
1. Bringing CEX Million-level Users into On-chain Ecosystem
With Binance Alpha 2.0 breaking down barriers between CEX and DEX, allowing users to easily and seamlessly purchase on-chain tokens, this makes it easier for Binance’s over 260 million registered users to enter the Web3 on-chain world. According to estimates by a16z from last October, the actual number of monthly active on-chain trading users is around 30 million to 60 million, while Binance’s user base is 4 to 8 times that, suggesting a potential growth in on-chain user numbers and liquidity by 4 to 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, enhancing trading security and success rates while significantly reducing liquidity fragmentation and depletion issues, thus improving capital efficiency. It is expected that other exchanges will follow Binance’s lead in launching similar features, further blurring the lines between CEX and DEX, lowering the technical barriers for users participating in on-chain trading. This trend is set to push on-chain trading from niche markets toward mainstream adoption, expanding cryptocurrency’s mainstream acceptance.
3. Reshaping Competitive Landscape in On-chain Racing
Since the beginning of this year, Binance’s strategy has clearly shifted towards closely engaging with the community and embracing on-chain assets, carving out a different winning approach through Alpha 2.0. Previously, in the DEX on-chain trading field, OKX Wallet and GMGN consolidated most of the market share due to their first-mover advantages and high-quality user experience, making it difficult for Binance’s web wallet to find a breakthrough. However, the emergence of Binance Alpha 2.0 has altered the competitive landscape, not only differentiating itself from competitors through selective tokens but also integrating the vast user base of CEX, directly bringing on-chain trading into the mainstream market. This CeDeFi innovation strategy provides Binance with the possibility of overtaking in the on-chain ecosystem.
4. BNB Chain Ecosystem Booster, Rekindling the 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 and serve as a long-term catalyst for the price increase of BNB. Furthermore, as the meme coin craze surrounding Solana fully cools down, Binance’s series of major moves in the meme space, combined with Alpha 2.0 introducing CEX’s multi-billion-dollar liquidity into the on-chain realm, may ignite a new wave of meme coins on BNB Chain this year.
5. Igniting the On-chain Token Issuance Wave Benefits Retail Investors
Binance also announced an upgrade to its token listing mechanism this month:
Introducing “Voting for Token Listing” and “Voting for Token Delisting” mechanisms to enhance community engagement, allowing users to have a greater say in the token listing process.
Providing unique TGE (Token Generation Event) projects exclusive to Binance Wallet with the opportunity to directly enter the Binance Alpha observation zone.
For project parties, Binance offers a more transparent and realizable new pathway to its user base and main site, allowing them to issue tokens on-chain (TGE) and gain favor from Alpha 2.0 through effective community operations, ultimately landing on Binance’s main site. This model provides a pathway for small to medium-sized quality projects, expected to attract more project parties to choose on-chain issuance, while also offering retail investors more opportunities to purchase low-priced tokens in the 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 domain. By simplifying on-chain trading processes, it brings hundreds of millions of users into the on-chain ecosystem while creating new opportunities for project parties and retail investors, resulting in a win-win situation. For Binance, this is a crucial step in solidifying its market leadership; for the entire industry, it may mark the starting point for on-chain trading to move into the mainstream.
References:
1. https://x.com/riyuexiaochu/status/1902310254907699457
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