Is Bitcoin’s network activity posing a threat to BNB Chain

Posted: September 11, 2023

• BNB still has a substantially higher number of daily transactions than Bitcoin.
• However, BTC dominated BNB last week on the social front.

BNB Chain [BNB] has managed to hold its second spot on the list of cryptos by daily active addresses for quite some time. However, the picture might change soon as Bitcoin’s [BTC] stats were closing in to those of BNB’s at a quick pace. In fact, if the latest data is to be considered, BTC might have already overtaken BNB in that metric. Was it a result of a drop in BNB’s network activity, or was something else also at play?

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BNB Chain and Bitcoin are competing well 

Coin98’s latest tweet revealed the top cryptos by daily active addresses. As per the tweet, Tron [TRX] continued to remain the largest blockchain, followed by Bitcoin and BNB. However, the difference between the two was marginal, as BNB had 970 thousand active addresses while BTC had 1 million.

#Tron, #Bitcoin and #BNBChain maintain their positions in the top 3, with Tron leading with an impressive 1.23M daily active users pic.twitter.com/neC8g9rk48

— Coin98 Analytics (@Coin98Analytics) September 10, 2023

A look at Artemis’ data suggested that BNB Chain has been witnessing a drop in its network activity for months now. Not only active addresses, but the blockchain’s daily transactions also dropped over the last three months. 

Source: Artemis

Upon a closer look at BNB and BTC’s charts, it was revealed that while BNB’s active addresses dropped, BTC’s stats moved upward, which allowed the king of cryptos’ to overtake BNB. However, it should be noted that BNB was still ahead of BTC in terms of daily transactions by a huge margin.

Interestingly, BTC recently witnessed a sudden uptrend in its captured value. The transaction fees for Bitcoin have grown significantly in the last few days. While BTC’s fees went up, BNB’s chart moved the other way.

Source: Artemis

How are BNB and BTC faring?

While both cryptos were competing well against each other in terms of network activity, their price action remained sluggish. Bitcoin continued to trade under $26,000 as its price dropped by less than 1% in the last seven days.

BNB’s price also moved marginally over the last few days. At press time, BTC was trading at $25,808.29, while BNB had a value of $211.59. 

Read Bitcoin’s [BTC] Price Prediction 2023-24

Though both coins’ price action was not volatile, their 24-hour trading volume increased by double digits, reflecting investors’ willingness to trade them.

Nonetheless, Bitcoin managed to outperform BNB on the social front. This was evident from Santiment’s chart, as it pointed out that BTC’s social volume was higher than that of BNB Chain. 

Source: Santiment