BSC Maintains Over 7-Day Hot Streak, Leads the Market as DEX Trading Volume Hits Record High Amid Meme Coin Frenzy

#BSC #memecoin #DEX

A week ago, the on-chain transaction volume on BSC (Binance Smart Chain) surpassed Solana, and the on-chain projects within BSC saw the highest surge of 1,300 times, kicking off the wealth-making effect of the BSC chain. At that time, the market generally believed that BSC’s explosive popularity was just a flash in the pan, and the sustainability of its hype and transaction volume remained uncertain.

One week later, a set of data provided the answer:

Since mid-March, the daily trading volume on DEXs within the BSC ecosystem has consistently outpaced other major public chains such as Solana, Ethereum, and Base. As of 5 PM on March 24, the 24-hour trading volume of BSC ecosystem DEXs reached $897 million, while the 7-day trading volume hit $14.33 billion — surpassing Ethereum’s $9.535 billion and Solana’s $7.678 billion, securing the number one position.

The wealth-making effect of Meme projects on BSC is also remarkably evident, with successful cases like $MUBARAK emerging one after another. Many early participants have reaped substantial returns, fueling a wealth effect that has sparked FOMO sentiment in the market. This, in turn, has further driven the popularity and trading volume of Meme projects.

Dual Engines of Liquidity Incentive Programs and Meme Culture

The persistent high momentum of the BSC ecosystem is far from accidental. Its underlying logic profoundly reflects the resonance effect of crypto market cycles and the institutional wave. Behind the scene of DEX trading volume leading the entire network for seven consecutive days are the precise implementation of liquidity incentive programs and the viral spread of Meme culture, forming a dual engine.

The BNB Chain officially launched the second round of the $4.4 million liquidity support plan, which directly led to Meme projects occupying 22 out of the top 50 positions. These projects not only contributed 72.52% of the absolute trading volume share but also created wealth myths with daily surges of up to 100 times. As the core hub of the ecosystem, PancakeSwap has maintained daily trading volumes exceeding $1.8 billion, with fee revenue and protocol income growing simultaneously, validating the qualitative transformation of BSC’s value capture capability.

The Deeper Driving Force Behind Explosive Growth

The underlying force behind this explosive growth lies in the convergence of traditional financial capital and crypto-native forces. When the Fed’s decision to maintain interest rates intensified market anxiety over fiat currency devaluation, institutional investors began injecting funds into the BSC ecosystem through compliant channels.

From March 17 to 21, the U.S. Bitcoin spot ETFs saw a net inflow of $639.9 million, with a significant proportion converted into BSC on-chain liquidity through cross-chain bridges. This pushed the network’s daily net capital inflow peak to $28.1 million.

More notably, a new alliance of leading mining pools and market makers has emerged, forming a “hashrate-liquidity” direct pipeline. This setup has established BSC as the primary floodgate for institutional capital, especially in the context of expanding spot premiums on Bitcoin.

The Prosperity of the BSC Ecosystem Also Gives Rise to Significant Structural Risks

Signs of excessive leverage in the derivatives market are already emerging. On March 22, the BSC on-chain contract trading volume peaked at $93.47 million, while the perpetual contract funding rate remained positive for 47 consecutive days. This imbalance in market equilibrium indicates an extreme imbalance of long and short forces.

What’s even more dangerous is something worth noting: Remember the analysis from a few days ago regarding the sharp decline in DEX liquidity depth that is destroying the price discovery function — the buy-sell order depth of the top 10 exchanges is less than 1% of the market price. This means that a $50 million sell order from a whale account could potentially halve the token price.What would be considered a crisis for BTC has already become commonplace within BSC ecosystem Meme projects.

On-chain behavior analysis shows that only 3.2% of active addresses on BSC hold tokens for more than a week. The vast majority of participants adopt a “five-minute strategy” — completing purchases within the first five minutes of the token being listed on DEX, then setting an automatic trading strategy with a 20% take-profit line and a 5% stop-loss line.

This extreme short-termism essentially represents an adaptive evolution in response to institutional manipulation, yet it also breaks the ecosystem’s value accumulation mechanism. To maintain hype, project teams are forced to release new tokens daily, creating a “liquidity inflation” death spiral.

BSC Ecosystem’s Prosperity May Face Three Major Challenges

Diminishing Marginal Effect of Liquidity Incentives: Currently, the average incentive fund consumption per competition project has reached three times that of the same period in 2024, while the user growth rate has decreased by 57%, indicating that market saturation is approaching a critical point.
Accumulation of Regulatory Risks: The U.S. SEC’s intensified regulation of NFTs may potentially impact Meme tokens, as 24% of BSC projects have undisclosed securitization attributes（The SEC’s recent lenient crypto policies do not include NFTs）.
Potential Bottleneck in Technical Architecture: When TPS (Transactions Per Second) exceeds a threshold, network state expansion may lead to a sharp increase in full node operation costs, potentially forcing BSC to make a difficult choice between decentralization and performance.

Conclusion

Overall, BSC’s current leading position is not just an advantage in trading volume, but the result of a synergistic effect of the entire ecosystem across multiple dimensions, including DeFi, Meme, and DEX. The continuous record-breaking DEX trading volume indicates that the activity level of the BSC ecosystem has reached an all-time high, while the wealth-making effect of the Meme sector continues to provide sustained capital inflows and emotional momentum to the market.

Whether BSC can maintain its leading position in the future will depend on the flow of market funds, the sustainability of ecosystem innovation, and the broader global crypto market environment. However, one thing is certain: Meme coins, as community sentiment-driven assets, inherently exhibit cyclical volatility. Their sustained popularity is constrained not only by platform operational strategies but also by the macro market environment.

The dynamic changes in on-chain interaction data over the next week may serve as a key indicator for assessing the continuation of this market trend.