The FUD around Binance has created a lot of fears among investors and pushed the withdrawal volume to an enormous $5 billion. A similar amount of withdrawals would have caused a catastrophe for any other exchange that is not Binance. But there is always an upside: as the FUD emerged, BNB's network activity spiked to unusually high values.
As Coin98Analytics suggests, BNB Chain reported the highest number of daily active users on the blockchain. With 1.1 million users, BNB reached the first place among other networks and easily gained the lead over the second place held by Ethereum with 402,000 users.
DAILY ACTIVE USERS BY BLOCKCHAIN
— Coin98 Analytics (@Coin98Analytics) December 17, 2022
1. BNB Chain
2. Ethereum
3. Polygon
4. Solana
5. Arbitrum
6. Fantom
7. Optimism
8. Avalanche
9. Starknet
10. MultiversX pic.twitter.com/b0fvIiV7xF
Such a large spike in the number of users could be tied directly to the most recent activity around the exchange withdrawal volume. At press time, the withdrawal volume has returned to normal values, and the outflow of funds from Binance has normalized.
In addition to the high withdrawal volume, BNB's activity has been fueled by a short-term spike in the NFT industry. The volume on various NFT markets has been seeing a short-term uptrend in the last 30 days. As for the Ethereum network, the high number of active users is not abnormal and stays within the average range.
Cardano omitted
According to different on-chain metrics, the number of active users on the Cardano blockchain has been reaching 70,000, which formally puts it in the fifth place of the aforementioned ranking. However, the network has not even made it into the top 10 of Coin98's list, which raised some concerns among ADA holders.
However, the exclusion of Cardano from the top might not have been intentional, as the data gathering tool used by Coin98 could have been unable to process the same kind of information on ADA due to differences in blockchain architecture.
Denys Serhiichuk
Tomiwabold Olajide
Godfrey Benjamin