After reaching an all-time high value in November 2021, there was a change in the typical transaction volume of the BNB Chain. Ethereum, BNB Chain, and Solana are the most prominent and successful businesses operating in the sector of layer-1 (L1) smart contract platforms now on the market. Every organization has something unique to offer in terms of value. For example, Ethereum is well-known for the extensive developer tools it offers, whereas BNB Chain is well-known for the developer-friendly environment it provides and the superb architecture it has. Solana, on the other hand, has a stellar reputation for being both cost-effective and scalable.
Over the last year, each of the platforms saw a significant shift in the DApp environment as well as the size of their user bases. These have a vibrant ecosystem for decentralized file sharing. Every platform begins paving its way with decentralized applications (DApps) as Uniswap and MakerDAO (on Ethereum), PancakeSwap and Venus (on BNB Chain), Raydium and Serum (on Raydium), etc (Solana).
On the other hand, they anticipated enormous expansion during the year 2021. After reaching their all-time high (ATH) native token values in the previous year, we have provided below information on how these three layer-1 cryptocurrencies have fared since then. The outcomes may take you by surprise.
Chain of BNB:
When BNB monitors the fluctuation in the value of the native tokens of all platforms, it ranks at the top when its value drops from its all-time high of $654.32 to its current value of $225.86. The studies indicate that it is almost equivalent to a 65.5 percent decrease. It replicates the performance it had during the bear market in 2018. BNB exhibited strength despite the downward trend and outperformed other hundred assets.
It reached $1,097 while seeing a drop of 77.1 percent, while SOL fell even farther, experiencing a drop of 87 percent within the same period. It is possible to buy it largely due to the frequent disruptions that have occurred on the network in recent months. One of the useful indicators of activity on a blockchain network is the number of transactions that take place throughout the process. It is a useful measure of the demand for network resources, and you can use it to figure out how many individuals make use of blockchain technology.
If you look at these three cryptocurrencies, Ethereum, BNB Chain, and Solana, you will see that on-chain activity has significantly decreased across the board for all three of them. All of these are regarded as their most valuable asset at any point in time. In recent times, BNB Chain has been seeing the worst downturn. Although ordinary transactions have dropped by 58.2 percent since reaching an all-time high. In addition, the value of Solana and Ethereum also dropped by 18.1 percent and 13.7 percent, respectively.
A layer-1 asset may have an increase in on-chain activity at the same time as it reaches its all-time maximum value. Speculators who are looking to make a profit off of the price movement are the ones that run it. However, this will not result in a sustainable increase in the number of users over time.
When you compare the regular active addresses on each chain and use them as a proxy for regular active users, you will find that BNB Chain and Ethereum have seen a decrease of 68.8 percent and 27.2 percent, respectively, since November 2021. This is found when you use the comparison to determine which chain has seen a decrease in regular active users.
On the other hand, Solana saw an increase of 20.4% in the number of active addresses in its database. In this particular instance, it is its NFT and Defi ecosystem that is to blame, in addition to the combination of OpenSea and Phantom Wallet. There was seen to be a decrease in the overall fees that each blockchain earns every day. As a consequence of this, it brings a reduction in income for miners and validators.