Intensified Market Competition: BNB Chain’s Strategy to Break Through in “Liquidity Wars”
Recently, the overall market environment has been on a downward trend, with Bitcoin fluctuating around $85,000. Market attention has been focused on BNB Chain, as both CZ and Yi He have actively promoted BNB Chain’s MemeCoins. The wealth effect of $mubarak has stirred excitement among investors. According to DefiLlama data, BNB Chain’s TVL increased by approximately 5% over the past week. The daily DEX trading volume on BNB Chain is around $2 billion, while Solana’s DEX volume is about $1 billion. As of this writing, BNB Chain ranks first among public chains in terms of daily DEX trading volume. In the short term, PVP (player-versus-player) activity has shifted from Solana to BNB Chain.
At the same time, BNB Chain has been upgrading its infrastructure and introducing initiatives such as reduced transaction fees and Binance Wallet IDO events. Amid this landscape, debates surrounding BNB Chain have intensified. In a results-driven market, how will the competition unfold? CoinW Research explores the key developments with you.
BNB Chain’s Memecoin Landscape
On March 12, MGX, a leading sovereign wealth fund company based in Abu Dhabi, Dubai, announced a $2 billion investment in Binance. This marks Binance’s first institutional funding round and the largest-ever crypto financing deal. This event is significant not only for Binance but also for the broader cryptocurrency market.
Interestingly, this event triggered a secondary wave of market activity, leading to a liquidity war centered around memecoins, with $mubarak at the forefront. Following the investment, Binance’s official media published an Arabic-style meme, which CZ promptly reposted with the word “Mubarak” （an Arabic blessing）. The market responded immediately — community members quickly launched the memecoin $mubarak on BNB Chain’s leading launchpad, Four.Meme.
This Middle Eastern wealth-inspired meme quickly became a focal point of market speculation. In a highly competitive PVP environment, multiple tokens were launched. However, $mubarak (CA: 0x5C85D6C6825aB4032337F11Ee92a72DF936b46F6), which was reposted by CZ, was widely perceived as having implicit endorsement, pushing its market cap beyond $15 million at one point. Later, CZ continued referencing Mubarak in Binance’s public forums, with Binance’s official channels and Yi He further amplifying its exposure. As a result, $mubarak’s market cap surged to $100 million. When CZ purchased 1 BNB worth of $mubarak from his public wallet (Wallet Address: 0x28816c4C4792467390C90e5B426F198570E29307), its valuation neared $150 million. This marks the second wave of BNB Chain’s memecoin boom following $TST.
Who Will Emerge as the Winner in This Battle?
With BNB Chain becoming the primary battleground for PVP activity, countless contract addresses (CAs) are being created, and new speculative token issuance strategies have emerged. Some community members have pointed out that certain KOL teams preemptively prepare memecoin related content and then spam comments under CZ and Yi He’s posts. If they receive a reply, they immediately execute token launches to capitalize on the hype.
In this PVP-driven war, only a small number of token launch groups profit, deviating from the original principles of memecoin communities.
Market reactions have been mixed. On one hand, traditional memecoin supporters strongly criticize this high-stakes, zero-sum game centered around individual figures. They argue that BNB Chain’s liquidity war lacks meaningful contributions to the industry. In contrast, Solana’s earlier memecoin cycle, led by $MOODENG, at least leveraged Web2 social media platforms and built genuine community engagement, presenting a different developmental model for the crypto space. The current trend on BNB Chain, however, is largely a closed-loop speculative game. How long can this sustain itself? Liquidity depletion is accelerating.
On the other hand, some observers believe that price movements dictate market sentiment, and the market is inherently ruthless. Comparing BNB Chain’s current memecoin cycle to Solana’s earlier one, the current phase appears to be mid-cycle. If investors exit before the bubble bursts, there are still opportunities to capitalize on.
For those not directly participating in PVP, alternative investment opportunities exist. For instance, projects like $CAKE, which are indirectly linked to this trend, have also seen impressive gains recently. Additionally, monitoring Binance’s activities beyond memecoins, such as the Binance Wallet IDO initiative and token listing votes, could provide other valuable investment opportunities.
Regardless of how the battle unfolds, BNB Chain is currently the biggest winner. According to DefiLlama data, BNB Chain’s DEX trading volume in the past 24 hours reached approximately $2 billion, ranking first among public chains. memecoins accounted for 72.52% of total trading volume, making BNB Chain’s leading DEX, PancakeSwap, the highest-volume decentralized exchange.
One interesting observation is that PancakeSwap’s market dominance has prompted community discussions on potential structural reforms. Proposed changes focus on shifting towards value-driven investments and prioritizing token holders’ interests. Specifically, PancakeSwap could introduce fundamental analysis metrics, public real-time financial reports (like stock markets), and a business-driven growth model. If Binance takes the lead in driving such a transformation, it could present a new paradigm for the industry. CoinW Research Institute sees this as a potential turning point for the market.
Observations and Reflections
Several key takeaways emerge from recent market developments:
Adapting to Market Changes: memecoins have become an integral part of the crypto market. Whether it’s BNB Chain’s recent liquidity war or Base’s new ecosystem group launch on Echo, many public chain-backed projects now include memecoins. From an investment perspective, evaluating fundamental project metrics, community strength, and market sentiment indicators may prove to be more effective strategies.
Identifying the Next Growth Sector: Just as DeFi Summer established Ethereum’s dominance and memecoins fueled Solana’s resurgence, current memecoin-driven hype across public chains is visibly unsustainable. The market needs to identify the next growth sector to ensure long-term development. Whether it will be RWA, AI Agents, or another emerging trend remains to be seen. Observers should stay vigilant.
Navigating a Challenging Market: The overall market remains sluggish. Trump’s Bitcoin strategic reserve plan has not generated substantial momentum, and market narratives remain scattered. In this environment, surviving until the next cycle may be the most prudent approach for seasoned investors.
