A liquidity pool will be established by BNB Chain as part of its endeavors to expand its stablecoin ecosystem and facilitate transfers from other networks.
To improve user experience, liquidity, and network interoperability, BNB Chain has introduced a new cross-chain bridge.
To introduce the BNB Chain bridge, the intelligent contract blockchain announced on August 28 that it has partnered with cross-chain technology providers Celer, deBridge, and Stargate. Furthermore, BNB Chain intends to establish a liquidity pool that facilitates the flow of funds from other chains into its network.
The company claims this is a component of BNB Chain’s more extensive plans to expand its stablecoin ecosystem. Using the bridge, users can transfer assets, including stablecoins, from one blockchain to another.
Establishing contact with the larger DeFi market
The BNB Chain team said that the new bridge will facilitate the expansion of the ecosystem’s decentralized finance (DeFi) offerings. The BNB Chain team thinks incorporating cutting-edge cross-chain protocols will increase the capital efficiency of the network’s blockchain assets.
The co-founder of DeBridge, Alex Smirnov, stated his excitement over BNB Chain’s entry into a cross-chain transferable “unified DeFi market.” Smirnov continued, saying:
“Having supported BNB Chain since day one of deBridge, it’s a tremendous honor to be selected as a canonical bridge provider for the official BNB Chain bridge aggregator.”
According to BNB Chain, the bridge launch also addresses a market need for reasonably priced cross-chain interoperability services. BNB Chain states that its partnership with cross-chain technology vendors strengthens its position in the blockchain market.
BNB Chain stated, “It is anticipated that more projects will be drawn to BNB Chain, helping them attain genuine business success and reach a larger audience.”
Competing for market share of stablecoins
The network’s apparent attempt to compete with other blockchains for stablecoin market share is evident in the announcement. With $89.7 billion in market share, Ethereum continues to top the stablecoin market, according to data released by Coin Metrics on August 16. That amounts to 55.7% of the entire market.
Tron secured the second position with a stablecoin value of $61.1 billion. This amounts to 37.9% of the market for stablecoins. In contrast, the BNB Smart Chain (BSC) held a mere $400 million market share within the $161.1 billion stablecoin industry. This amounts to 0.2% of the market as a percentage of all networks.
Additionally, a spokesperson of BNB Chain said that that stablecoins continue to be a crucial component of a robust DeFi ecosystem. They declared:
“As we continue to build a leading DeFi hub on BNB Chain, and expand into payments, we will continue to serve users by offering a diversified set of robust stablecoin options to meet their needs.”
BNB Chain also mentioned that the bridge is a reaction to input from developers and users. The spokesman said, “BNB Chain Bridge is a response to user expectations of having a single interface for bridging to BNB Chain.”
