As BNB once again breaks through the $800 mark, setting a new historical high, looking back at the dreamlike glorious journey of the BSC ecosystem during the previous bull market in 2021 evokes a myriad of feelings. At that time, XVS soared from $2 to $147, and CAKE also surged to a peak of $44, with many 'legendary tokens' repeatedly performing wealth miracles, but what is their current situation? Let's delve into the magical changes in the field of digital encryption.
1. BNB Breaks Through $800, but the Glorious Scene of the BSC Ecosystem is Hard to Find
In July 2025, BNB triumphantly broke through $800, with a market capitalization exceeding $110 billion, firmly securing a top three position in the global cryptocurrency market capitalization rankings. However, looking back at the bull market of 2021, while BNB also approached a high of $700 at that time, the BSC ecosystem was in full bloom, with the astonishing price increases of tokens like XVS and CAKE, but now, in comparison, the entire ecosystem feels like a distant memory.
2. The Glorious Scene of the BSC Ecosystem in Its Past Peak
(1) The Ups and Downs of XVS
XVS, as the core token of the Venus protocol, embarked on a dream journey in May 2021, starting from an initial $2, driven by mysterious whales, and the price rapidly climbed to $144. However, this good fortune was short-lived; the shocking event of 'air dropping big cakes' was like a thunderclap, causing XVS's price to plummet in a snowball effect, and the Venus protocol thus bore the burden of nearly a hundred million dollars in bad debt.
Now, time has passed, and the price of XVS has fallen by more than 90%. The once high enthusiasm and confidence in the community have been severely impacted, and the development team has quietly withdrawn from the management front line. The once booming BSC lending track is no longer glorious, with its popularity plummeting.
(2) The Glory and Despair of CAKE
Speaking of CAKE, PancakeSwap's 'jewel in the palm', during the peak of the bull market in 2021, its price reached as high as $44, shining brightly. Yet by March 2025, even though it rebounded, it only reached $2.16. Although its TVL (Total Value Locked) still stubbornly maintains at over $1.6 billion, compared to its former glory, it has already lost its luster, and the splendor is hard to recreate.
3. Analysis of the Reasons Behind the Difficulty in Continuing the Glory of the BSC Ecosystem
(1) The Impact of Intense Competition in DeFi 2.0
With the continuous development and evolution of the cryptocurrency industry, the era of DeFi 2.0 has quietly arrived, and emerging public chains such as Solana and Base have sprung up like mushrooms after rain. They have seized DeFi market share with their unique advantages. In this fierce competitive race, BSC's once proud advantage of 'low Gas fees' has gradually lost its exclusive halo and is no longer the killer feature that sets it apart, with market share being continuously eroded.
(2) The Heavy Shadow of the Venus Incident
Looking back at the XVS liquidation crisis in 2021, it not only brought disaster to the Venus protocol itself but also exposed the fatal shortcoming of the entire BSC ecosystem in risk control, like an earthquake. After this crisis, many institutional funds, considering risk aversion, turned their ships towards more stable and reliable tracks, severely damaging the funding base of the BSC ecosystem.
(3) The Inflation Dilemma of CAKE
The inflation problem facing CAKE is like a nightmare that is hard to shake off. Although the project team has repeatedly implemented measures to reduce production in an attempt to salvage the situation, in the eyes of market participants, its characteristic of 'high fully diluted valuation (FDV) corresponding to low circulation' still leaves people feeling uneasy, and the lingering cautious attitude is like a shadow, always looming over CAKE's development path, hindering its efforts to regain former glory.
4. The Future Dawn and Uncertainty of the BSC Ecosystem
(1) New Opportunities Brought by the BNB Chain Upgrade
In July 2025, BSC will undergo a major technical upgrade, successfully increasing performance to 100M gas/s, while the probability of MEV (Maximum Extractable Value) attacks is significantly reduced by 95%. This upgrade undoubtedly paves a more solid and secure path for the future development of the BSC ecosystem, injecting strong momentum for its resurgence from the technical foundation.
(2) Potential Opportunities in New Narrative Directions
In the ever-expanding cryptocurrency industry, the two emerging narrative directions of RWA (Real World Assets) and AI + DeFi are expected to become a new growth engine for the BSC ecosystem. However, with opportunities come challenges; to make achievements in these two areas, BSC must properly address the tricky issues left over from history, such as the bad debt legacy of the Venus protocol and the deflationary dilemma of CAKE. Only by clearing these obstacles can it enter the new development track with ease, seizing opportunities for takeoff.
Once, BNB broke through the $800 mark, but the golden age of the BSC ecosystem seems to be fading into the distance, turning into a series of memories. The rise and fall of XVS and CAKE exemplify the harsh and real iron law of the cryptocurrency market: bull markets can create gods in bulk, but bear markets are the ultimate test of their true value. Currently, people can't help but wonder, in the next wave of bull market, can the BSC ecosystem find a new breakthrough point with its own foundation and transformative power, and once again write its glorious chapter?
Dear readers, do you still hold XVS or CAKE? In your opinion, does the BSC ecosystem still have a chance to return to its former peak? Feel free to express your unique insights and thoughts in the comments section.$CAKE
