• GMX, a decentralized exchange, has proposed a launch on the Binance Smart Chain (BNB) in order to mutually benefit both parties.
• Activity on the BNB chain has declined, as reflected in a drop in dApp usage, a decrease in the frequency of BNB transfers between addresses, and a decrease in the overall volume of transactions.
• Despite the decline in activity, BNB still managed to increase its TVL, however its revenue decreased by 33% in the past week.
GMX, a decentralized exchange initially deployed on the layer 2 solution Arbitrum, recently proposed its launch on the Binance Smart Chain (BNB). According to GMX, this collaboration will be mutually beneficial for both GMX and Binance, as it could help address Binance’s declining transaction count and velocity.
The decline in activity on the BNB chain has been seen in a drop in dApp usage. According to data provided by Dapp Radar, popular DEXs, such as PancakeSwap and Hooked experienced a decrease in the number of unique active wallets on their network. The number of unique active wallets for Hooked declined by 47.26% in the last seven days, while the number of unique active wallets on PancakeSwap fell by 25.26%. Furthermore, the volume on the dApp also decreased by 56.04% during the same period. This decline in activity could be due to a decrease in the frequency of BNB transfers between addresses, as indicated by Santiment.
But despite the decline in activity, BNB still managed to increase its TVL according to data provided by DeFiLlama. BNB’s TVL went from $4.13 billion to $4.23 billion in the last week. However, despite the growing TVL observed by BNB, its revenue continued to decline. BNB’s revenue decreased by 33% in the past week, which made the TVL stand at $5.7 million at the time of writing according to token terminal.
The launch of GMX on the BNB chain could potentially help to revive activity on the BNB chain, as it will bring more users to the BNB ecosystem. In addition, the launch of GMX on BNB could also bring additional revenue to BNB, as GMX will help increase the volume of transactions on the BNB chain. For GMX, the launch on BNB will enable it to reach a larger user base and increase its user base.
Overall, the launch of GMX on the BNB chain is a win-win situation for both parties, as it will help to revive activity on the BNB chain, while also providing additional revenue for BNB. It will also help increase the user base of GMX, and provide users with a secure and efficient platform to transact on.