Smart contracts continue to rise amid market downturn: BNB Chain Q2 report

Although some consider the second quarter of 2023 a lost quarter, others find that the smart contracts industry remains resilient. Even though the crypto space suffered from lower investments from venture capital firms, developers continue to deploy smart contracts, signaling a growing demand for blockchain-based solutions.

In its Q2 report for 2023, blockchain platform BNB Chain noted an increase in verified smart contracts. According to the report, platforms like BNB Chain, Ethereum, Polygon, Fantom, Avalanche, Arbitrum and Optimism all recorded a percentage increase in verified smart contracts in Q2.

*Number of smart contracts verified weekly from September 2022 to the end of June 2023. Source: BNB Chain*

BNB Chain said that the rise in verified smart contracts across multiple blockchains highlights the “increasing importance placed on security, reliability, and scalability within the blockchain ecosystem.” The firm also wrote that this underscores the industry’s resilience despite bear market conditions.

Based on the data they’ve collected for the second quarter, the company also predicted some potential trends that may continue throughout the year. According to BNB Chain, there may be continuous momentum in layer-2 solution adoption because of their scalability and cost-effectiveness. Apart from this, the report also predicted a focus on smart contract security, with crypto platforms putting more investment into advanced cryptography and audits.

Meanwhile, regulatory scrutiny is also expected to rise along with developments within the space. According to the report, compliance will be key for developers and organizations. The report recommended ensuring that companies stay updated with regulatory changes and making sure they’re compliant.

As crypto market prices remained low, venture capital funding also recorded one of its worst quarters. On July 6, data showed that Q2 2023 recorded one of the lowest quarters in terms of crypto fundraising. Notwithstanding this, executives working within the crypto industry have largely remained positive about the crypto space’s long-term prospects.

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