Demand for On-Chain Features Remains Strong Despite Market Losses
New active wallets are migrating to several EVM-compatible chains, indicating a persistent appetite for on-chain activities. Even amidst an overall market drawdown, Web3 activity continues to flourish with applications fostering broader adoption.
Ongoing activity is funneled into BNB Smart Chain and Base, responding to a lull in Solana’s meme market. BNB Smart Chain leads with 4 million daily active users, compared to Solana’s 2.7 million. Recently, Binance added another 2 million wallets based on unique address data.
BNB Smart Chain is now surpassing Solana in daily active addresses, primarily thanks to PancakeSwap.
Base Leads in New Wallet Inflows
Base took the lead in new wallet inflows, adding 2.8 million addresses over the past week and reaching a total of 30 million unique addresses in February. The shift towards Base highlights the demand for affordable on-chain activities along with high liquidity for DeFi investments.
All L2 chains recorded over 9 million weekly active wallets, showing consistent growth. The L2 ecosystem remains vibrant, with over $10.5 billion in stablecoin liquidity fueling trading. Decentralized trading constitutes 18.5% of exchange activity, illustrating its resilience amid lower ETH prices and adverse sentiment.
Efforts by the most active chains seek to escape the risk of becoming ‘dead networks’, focusing on building robust applications established since the 2021 bull market.
The Ethereum Ecosystem’s Ongoing Relevance
Other active chains, including Polygon and Ronin, continue to attract users, reflecting the lasting impact of the 2021 Web3 bull cycle. Polygon’s usage has expanded notably, driven by popular applications within its ecosystem.
The past week also saw a surge in Sonic (formerly Fantom), as its mention grew across social media, accompanied by new meme-token offerings.
Increased DEX trading demand is invigorating EVM chains, with PancakeSwap significantly boosting BNB Smart Chain, while Base capitalizes on its leading DEX, Aerodrome.
Low gas prices on Ethereum, as low as $0.04, have spurred new user activity, adding 752,000 new addresses in the past week.
Smaller Chains Gaining Token-Based Traffic
On-chain analysis indicates that activity on smaller chains is driven by recent token launches and DEX activity. Solana remains the top network for tokenization, closely followed by Base.
Sonic has climbed to the top 5 of chains for tokenization, with a high level of DEX activity. Similarly, Arbitrum is now back among the top 15, while PulseChain and TON tail closely behind.
Changes in trading bot usage also indicate a shift among the most active networks. Solana holds 82% of bot users, but BNBChain and Base have recently gained a growing share. Base, though currently the smallest bot-enabled chain, shows potential due to lower competition driving its DEX activity.
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