Smart Contracts Growth Resilient Despite Bear Market: Report

Investing

Published: July 27, 2023 10:14 pm

In spite of unfavorable market conditions in Q2 2023, the crypto industry recorded a noteworthy growth in smart contract applications. Verified smart contracts on the BNB Chain witnessed the strongest growth rate in the second quarter, followed by Ethereum, Polygon, and Avalanche, among others.

BNB Smart Contracts Grew 7% in Q2 2023

The number of smart contract applications has grown substantially over the past few years, with this uptrend continuing in the second quarter of 2023, according to a new BNB Chain report. The Q2 2023 growth in verified smart contracts was seen across different blockchain networks, including BNB Chain, Ethereum, Polygon, Fantom, Avalanche, Arbitrum, and Optimism, among others.

“Despite the bear market conditions in Q2 2023, such as the decrease in Venture Capital funding flowing into the space, the number of verified smart contracts continued to rise, underscoring the industry’s resilience and the increasing demand for blockchain-based solutions.”

– BNB Chain wrote in the blog post.

More specifically, BNB Chain dominated the verified smart contracts market in the most recent quarter, displaying a market share growth from 38% to 45% at the end of the three months.

The number of daily active users (DAUs) on the BNB Chain exceeded 1.2 million in Q2, reinforcing its position as one of the leading platforms for building smart contracts. BNB Chain’s layer 2 scaling solution, zkBNB, witnessed a particularly strong adoption rate this year, the report states.

Smart Contracts Growth on Other Blockchain Networks

Among other chains, Ethereum remained the most dominant blockchain used for the development of smart contracts. Notably, the second-largest blockchain network saw the percentage of verified smart contracts range from 31% in April 2023 to 34% in June 2023. Earlier this year, BNB Chain topped Ethereum as the biggest blockchain in decentralized exchange (DEX) volumes after the latter suffered a considerable market share drop.

Furthermore, other chains, such as Polygon, Fantom, Avalanche, Arbitrum, and Optimism, also attracted consistent engagement regarding verified smart contract activities. In percentage terms, the number of verified smart contracts on Polygon stood at 10.8% in April and remained consistently in the 10-12% range throughout the quarter.

Meanwhile, Fantom’s verified smart contracts presence was 3.3% in April, declining to 1.4% by June 2023. Avalanche, on the other hand, recorded a steady growth rate of between 2.2% and 2.7% throughout Q2.

This article originally appeared on The Tokenist

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