Binance Smart Chain has a phenomenal ecosystem of easy to use Decentralized Finance protocols and an exploding array of blockchain games. This has created an entire economy of its own, helping Binance Smart Chain reach its all-time high transactions in a day.
The gaming industry has always been extremely innovative. It has given us amazing graphics cards, virtual reality and much-needed entertainment. Not just that, with the inception of the blockchain technology gaming industry, was one of the first to embrace it. In turn, crypto projects have enhanced the gaming experience has shifted the gaming industry from a pay-to-play model to a play-to-earn model. Indecently, the gaming industry has been able to exploit the utilities of blockchain technology to its optimal use. Combined with metaverses and NFT marketplaces, the gaming industry has changed our interactions with reality. Binance Smart Chain has been quite an instrumental tool in this shift. With loads of blockchain-based games, it has attracted the attention of many new age gamers. This process has been one that requires our special attention.
How did it all start?
After the inception of Binance in 2017 by Changpeng Zhao, Binance gained traction as one of the largest crypto exchanges. Later, Binance Chain was developed to move Binance’s ERC-20 token to Binance’s native token. Binance Chain is one of the native blockchains of Binance. Soon developers realized the limitation of the Binance Chain to work with Ethereum based applications. Consequently, Binance developed Binance Smart Chain to support Ethereum Virtual Machine compatibility and smart contracts. This helped Binance Smart Chain to support blockchain games.
The two entities are thought of as being the same but that is just not true. Binance Smart Chain’s can handle smart contracts and Ethereum based applications. This helped it facilitate an ecosystem of DeFi and metaverses Therefore, DeFi protocols on the platform grew in number. Soon, developed realized the beneficial combination of DeFi, metaverses and blockchain games. This would later lead to a frenzy of play-to-earn blockchain games.
DeFi ecosystem coupled with metaverses and play-to-earn games created an entire economy of its own. Binance Smart Chain has a retail-friendly meme component through platforms like PancakeSwap. This made it more casual for users to utilize the Binance Smart Chain. The games would later be recognized by these users. The growing interest led to a boom of Axie Infinity in early 2021.
Binance Smart Chain’s All-Time High
The user interest in Binance Smart Chain grew with DeFi protocols, metaverses and Blockchain games. These three entities allowed users to play games and earn money. Sometimes through NFT marketplaces or in-game rewards. Later the same money could be staked on DeFi protocol on BSC for passive income. The growing interest in lending and earning protocols like Belt Finance and Venus helped Binance retain total value locked in billions. At a point, the TVL (Total Value Loked) with the top five DeFi protocols on BSC was around $17 billion. Consequently, BSC recorded about 14.7 million transactions in one day, thus reaching Binance Smart Chain’s all-time high. No doubt that the momentum behind this came from blockchain games and the underlying DeFi infrastructure.
We must expect more action with blockchain games as top funding venture capital firms have started investing in the trend. Binance labs (the investment arm of Binance) has also made investments in the play-to-earn model and metaverse space. Consequently, Binance Smart Chain and Animoca Brands have set up a $200 million program for blockchain games. Other blockchains have like Solana and Terra have also started taking interest in the field.