I participated in the first IDO on the BN wallet only after it went live, with a single return rate of around 10%, leading to an annualized return of over 120%.
What more do we need?
I realized one thing, in terms of single-coin capital efficiency, at least I glanced at the current top 50 in CMC, and no coin can surpass BNB.
Behind this benefit is the buff flywheel brought about by the growth line of the trinity.
(1) BNB Chain currently acts as a forward player, single-handedly competing in the contest of several major 'on-chain mythical beings.' This aligns BNB-based on-chain activities with mainstream liquidity.
(2) The wallet acts as a small forward, cooperating with BNB Chain's on-chain movements for flanking attacks. The tools may not feel particularly useful yet, but what ends up in your pocket is solid.
(3) The main site on the exchange side feels more like the central pivot, serving as the industry’s secondary 'liquidity endpoint,' consistently grasping the 'penalty area' discourse power.
Back in 2022, when I just switched from traditional finance to crypto, a former colleague of mine talked to me about our industry, and I said to him:
“Having Binance's BNB is the most aligned with traditional value investment perspectives, with a brand moat, ample cash flow, and high profit margins.”
Now, there is still sufficiently robust capital efficiency.
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1. BNB Chain is reclaiming the on-chain market share it had lost.
The two main players of on-chain liquidity in this cycle are Solana and Base, with Solana leading throughout 2024, while Base occasionally supports.
From the targets that went live after BNB was listed on Alpha last year, we can get a glimpse: about 35% were Solana, 15% were Base, and the remaining BNB Chain targets seemed a bit forced without a clear angle at that time.
It's completely different from now.
Last month, when BNB Chain was at its peak, it caused a siphoning effect on Solana's on-chain liquidity, coinciding with rumors of major ecosystem players 'jointly managing,' whether it's timing or luck.
Just as BNB Chain took over the overflow liquidity from Ethereum during the past DeFi Summer, this cycle is still absorbing Solana's on-chain liquidity.
deBridge @deBridgeFinance is one of the top 2 cross-chain protocols in market share between two chains, and the data is quite authoritative. The above image shows the on-chain capital inflow situation of BNB Chain from February 11-17 last month.
It is also one of the few times in the past year where it has been on par with Solana or even surpassed it during the same period.
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2. When will the ceiling open?
On February 13, the transaction volume of DEX on BNB Chain significantly exceeded Solana at 6.9 billion, especially after @CZ and @Yi He engaged in frequent interactions with the community, leaving ample room for market imagination.
I personally experienced the short-lived on-chain craze of BNB Chain, and it didn't feel as fast-paced as Solana, nor did it see any massively valued projects emerging.
“Currently, the Meme on BNB Chain just needs to establish a typical example to unlock the market cap ceiling.”
This is a perspective I found quite interesting and reasonable in the market. The previous on-chain heat, under the leadership of CZ and the top female influencer, looked more like a multi-point encirclement strategy, giving ideas for the community to create secondary content.
Through a large sample of competition and contesting, then landing on the wallet's Alpha for secondary screening, and finally launching on the main board to open further ceilings.
Now, in the [voting for coin listing] stage, all the targets are from BNB Chain, which is somewhat like the final 'third side,' potentially opening up the on-chain ceiling for BNB Chain through main board listings.
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2.1 Here’s my personal opinion.
Additionally, BNB Chain has successively launched subsidy programs, recently raising the amount to one hundred million dollars, which indeed supports BNB Chain, but the overall tone feels a bit like encouraging short-term speculation.
I personally hold $KOMA because I don't have much, so I've held onto it for quite a while. I've been in the community and have seen KOMA participate in activities repeatedly, making it to the forefront yet missing the championship each time, which leaves me feeling quite complex.
Because it seems that each time the activities feature mostly new targets, and the launch of several incentive activities also appears to encourage new targets.
But KOMA and other contemporary Memes aren't old either; isn't it just from last year?
(I know the activities were changed later, but the market is also making choices with funds, and the activity on Solana has picked up again~)
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3. Looking back at the development of Binance and even BNB, it seems to continuously perform the story of 'surpassing' as a 'latecomer.'
(1) For example, the exchange business wasn't the first to do it, but it quickly surpassed previous competitors in market share after '94.'
With the overall market sentiment low during the 2018 bear market, Binance stabilized its user base by rapidly listing altcoins and launching the BNB discount trading fee mechanism.
(2) For example, the contract business wasn't the first to do it, but it officially surpassed other competitors at the beginning of 2021 (if I remember correctly).
(3) For example, by launching BNB Chain, attracting a large number of DeFi projects with low gas fees and high transaction speeds, capturing the overflow value from Ethereum during DeFi Summer.
Initially, BSC was questioned for plagiarism and lack of originality. However, through low-cost advantages and ecological support, BSC took over part of Ethereum's market in the DeFi field, becoming one of the fastest-growing public chains in 2020.
(4) Now, although Binance's wallet lacks product strength, real subsidies and unexpectedly encountering regulatory storms for competitors have allowed the market share to reach nearly 50% in the short term.
Although there are IDO and gas subsidy policies driving this, the timing is quite coincidental and a bit frightening.
Looking back, several business segments of Binance have a similar pattern of development: 'latecomer and surpass.'
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4. Perhaps the wallet business may struggle to maintain product capabilities in the short term, but judging from the strength of the IDOs, it seems they want to establish the wallet's supportive role in the [trinity] framework through alternative approaches.
At that time, Binance's main site's LaunchPad was the sector most likely to generate hundredfold or even thousandfold coins; the market consensus (about 2023) was 'you must seize Binance's LaunchPad.'
The past LaunchPad facilitated user growth for the main site, propelled BNB prices, enhanced the voice in coin listings, and improved user loyalty.
In the new cycle, Binance has not restarted LaunchPad, and due to the increased weight of on-chain presence, it is enhancing BNB's capital efficiency and expanding user profiles from different dimensions through this [trinity] strategy.
Finally, sorting out the actions:
Main site: Various Hodler airdrops + LaunchPool contributions + voting for listing coins, all directly related to BNB, from benefits to use cases.
Wallet: IDO + Alpha 2.0 linked with the main site, enriching user profiles and connecting primary and secondary liquidity.
BNB Chain: Spending money + personally stepping in to lead the rhythm.
In summary: continuous empowerment of value, increased user profiles, and potential wealth effects (not relying solely on Meme operations; here BNB Chain incentivizes Memes, while the wallet starts low-market-value quality targets with IDOs).
