The BNB Smart Chain, formerly Binance Smart Chain, is an EVM-compatible blockchain known for fast and cost-effective smart contract execution. It forms Layer 1 within the BNB Chain ecosystem, supported by Binance. Recently, the TVL in this ecosystem has seen a sustained decline in both USD and BNB value over the past year.
The Total Value Locked of the BNB token has been on a downward trend. In Q3 2022, it was at $5.7 billion, but it dropped to $4.7 billion in Q2 this year. In the last quarter, it fell by over 23% to $3.6 billion. Additionally, daily average transactions decreased from $2.1 billion to $1.2 billion during this time.
Binance made an announcement on Monday, revealing a planned token burn in which they eliminated more than $450 million worth of BNB tokens. Token burning involves permanently removing tokens from the circulating supply by transferring them to an address beyond anyone’s control. This action has the potential to enhance the value of BNB tokens for their holders by reducing the overall supply.
Amid Binance’s current situation, a recent cyberattack has taken aim at the BNB Smart Chain. Security analysts at Guardio Labs discovered a new threat called “EtherHiding,” revealing how attackers exploit BSC’s smart contracts to covertly disseminate malicious code. This involves infiltrating WordPress sites with code to access blockchain contract sections, which are then concealed within BSC smart contracts to serve as hidden platforms for their malicious actions.
In conclusion, this cyberattack is alarming, not just for BSC. As cybercriminals evolve, the need for stronger online ecosystem protection grows. Staying informed and taking proactive security steps can help us collectively defend against these emerging threats, creating a safer digital environment.