There is a significant development for an altcoin. There is something remarkable this year in BNB Chain, formerly known as Binance Smart Chain. Accordingly, there was an outflow of approximately 2 billion dollars from the ecosystem in 2023. It has also experienced a significant exodus of decentralized finance (DeFi) investors. This mass departure follows increased global regulatory scrutiny targeting Binance and other centralized crypto finance (CeFi) service providers.
CZ’s optimistic forecast
Interestingly, Binance CEO Changpeng Zhao (CZ) had previously expressed optimism that DeFi would outperform CeFi in the upcoming bull market. This insight was expressed during a live ‘Ask Me Anything’ (AMA) session on X Space on September 3, where CZ discussed the challenges facing Binance and regulatory issues regarding DeFi platforms. However, recent data regarding CZ’s significant holdings in altcoin BNB, BNB Chain’s native token, stands out. There are also doubts about the crypto billionaire’s vision for the cryptocurrency market. However, it raises questions about Binance’s rumored success in the decentralized finance sector.
There is data from DefiLlama on October 7th. It reveals a total year-to-date (YTD) loss of $1.85 billion in value for BNB Chain. The total value invested on January 1, 2023 was $4.65 billion. Additionally, around $2.8 billion was down on TVL at the time of this publication.
Altcoin PancakeSwap and Venus dominance
PancakeSwap (CAKE) and Venus (XVS), the leading DeFi protocols on BNB Chain, stand out. Accordingly, it constitutes a significant part of the total value invested. Altcoin PancakeSwap currently holds $1.27 billion in TVL. Venus, on the other hand, has a TVL of $608.46 million. Both witnessed outflows of 1.52% and 7.18% in the last 30 days.
Interestingly, it stands out as the third largest DeFi protocol by total value locked. The altcoin includes Binance staking-focused ETH, which is measured in Ethereum (ETH) rather than BNB. This unique approach accrues value for the legacy chain as investors leverage the structure of CZ when choosing Ether to stake to generate passive income.
Altcoin BNB price analysis
Altcoin BNB has fallen 13.8% since the beginning of the year. Starting the year at $246.66, the current trading price is $212.62 at the time of this writing. This price drop also affected the TVL metric as DefiLlama measures the total value in USD despite the investment in BNB. Additionally, there have been fewer BNB tokens locked in the chain’s protocols since the beginning of 2023.
From Kriptokoin.com, BNB Chain is struggling amid increasing regulatory challenges. It is also facing a significant exodus of DeFi investors. This situation also means danger for altcoin BNB. On the other hand, it affects the future course of the platform. It also raises questions about its compatibility with CZ’s optimistic predictions for the DeFi sector.
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