Is BNB Chain Experiencing a “Late Qing Moment”? Multiple Parties Competing to Rescue the Market—Which Path Will Lead to the Future?
Fragmented BSC: Factions Stage a Revival Drama
Once a dazzling protagonist in the DeFi and GameFi boom, BNB Chain has recently experienced a sharp decline in liquidity and a shrinking ecosystem, leading many community users to worry about its future. Among them, Twitter user @Loki_Zeng sparked heated discussions with a comment likening the current state of BNB Chain to the “Late Qing Empire”, describing how various factions on the chain are acting independently, trying to revive the ecosystem in different ways.
He noted that from meme speculation and contract massacres to liquidity subsidies and capital manipulation, each route appears to have potential but comes with its own shortcomings. Below is @Loki_Zeng’s detailed analysis and observations on the current state of BNB Chain:
“Meme Craze” Route: $Mubarak Once on the Verge of Igniting the Scene
Loki stated that the “Meme Craze” route led by Binance founder IP was initially expected to replicate the explosive power seen at the peak of BSC in 2021 or during the Solana meme climax. In particular, the token $Mubarak was close to breaking through its valuation ceiling. If there had been 1 or 2 more successful cases at that time, it could have ignited a rebound across the entire ecosystem.
Unfortunately, this wave of meme enthusiasm was more noise than substance, failing to form a lasting market traction. The outcome was that small traders and whales rushed to cut losses, leading to liquidity drain and price shrinkage, ultimately failing to support the market.
Alpha Massacre Route: Mechanism Design Defeated by Voting System
Loki pointed out that another revival plan that once seemed promising was a massacre mechanism linked to contracts and spot trading, aiming to eliminate competitors and concentrate liquidity on a few strong tokens to create survivor bonuses.
However, the introduction of the “voting for tokens” mechanism disrupted the rhythm of this strategy. Not only did the universal entry of contracts lead to a lack of decisive competition, but the low elimination rate further diluted liquidity. The most regrettable aspect of this route was the potential project $TUT, which failed to successfully enter the core liquidity pool and ultimately missed its opportunity.
In-House New Token Offerings and Wallet IDOs: A Mediocre Route
Loki believes that the VC Coin (venture capital tokens) route of Wallet IDOs and in-house new token offerings attempted to leverage platform resources to promote new coins and attract users. However, this approach provided insufficient support for valuations, resulting in generally lackluster performance for new tokens.
Additionally, failures in the anti-witch mechanism design, abuse of airdrops, and rampant bots led to a deteriorating overall participation experience. Although it was not a complete failure, it cannot be deemed a success, becoming a mediocre route with little impact.
(Binance Wallet trading volume surged by 520%, and various policies such as Binance Alpha 2.0 have driven the BNB Chain ecosystem to ignite market enthusiasm)
Liquidity Incentives and Subsidy Programs: Resource Misallocation, Limited Impact
To invigorate the ecosystem, BNB Chain launched the “100 Million Dollar Liquidity Incentive” and “Listing Subsidy” programs aimed at supporting small to mid-market cap tokens. However, the actual effectiveness has been minimal, leading to ongoing criticism from the community.
(BNB Chain launches a 100 Million Dollar Liquidity Reward Program to support native token listings)
Loki believes that if these funds were used to boost projects with breakout potential or to reopen liquidity incentives for platforms like PancakeSwap, the benefits might be greater. Rather than distributing subsidies broadly, it would be more effective to concentrate efforts on breaking valuation bottlenecks and driving overall market sentiment.
Capital Group Route: Conspiracy is Also Hope
He indicated that one of the most noteworthy routes is the “capital manipulation group” led by Solana Optimistic Network and baos.world. Although early community concerns about Baos World’s slow development even sparked FUD, recent progress indicates that this is a team that truly understands market dynamics.
Loki believes that such groups that “know how to pump and control capital” are, in fact, the most promising forces within BNB Chain at present. Conspiracy is not to be feared; what is feared is the inability to generate heat; if they can boost asset prices and gather popularity, this “realist” path may indeed be the most effective.
The Future of BNB Chain Relies on Collaboration, Not Luck
Perhaps the current predicament faced by BNB Chain, as Loki describes, resembles a “Late Qing” style multi-faction disintegration, where various factions have initiative but lack strength. The real key lies in whether they can form a united front, concentrating resources to create a new consensus. Whether through meme speculation or incentives, the focus must be on who can ignite market sentiment and revive on-chain liquidity. Perhaps the next wave of resurgence lies in an unexpected route.
Risk Warning
Investment in cryptocurrencies carries a high risk, with prices potentially experiencing severe volatility, and you may lose your entire principal. Please evaluate the risks cautiously.
