Binance goes Layer-2 with opBNB, details inside
- BNB Chain released its Ethereum Virtual Machine (EVM) compatible layer 2 chain opBNB.
- BNB’s price action was sluggish, and metrics suggested that the trend might continue.
BNB Chain [BNB] has witnessed a decline in its daily active addresses and transactions over the last few weeks. The decline reflected less usage and adoption of the blockchain. However, BNB Chain has made efforts to overcome the limitations of the layer-1 network with its latest launch.
As blockchain technology continues to evolve, scalability remains a critical challenge.
But fear not! Enter opBNB, a game-changing Layer 2 scaling solution designed to overcome the limitations of Layer 1 (L1) networks.
Let's discuss opBNB below ?https://t.co/irYn1OPtfQ
— BNB Chain (@BNBCHAIN) June 19, 2023
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On 19 June, the blockchain announced the release of its opBNB testnet. It is an Ethereum [ETH] Virtual Machine (EVM) compatible layer 2 chain, based on Optimism [OP] Stack. Notably, the testnet looks to enhance BSC’s scalability while preserving affordability and security.
As per the official announcement, opBNB went live on 19 June. It brought with it several benefits and advantages, most importantly scalability. opBNB can support over 4000 transfer transactions per second.
This has been made possible because of the optimization of the data accessibility, caching layers, and the adjustment in the submission process algorithm, which allows simultaneous operations.
Another key advantage is enhanced security. BNB’s official announcement mentioned that the transparency and verifiability of transactions on opBNB will encourage a healthier and safer application environment.
Binance to witness a change?
As per Artemis’ data, Binance’s daily active addresses plateaued over the past few weeks. Its daily transactions have also declined since mid- May 2023. However, considering the popularity of L2s, the scenario might change soon.
opBNB’s launch caused BNB’s popularity to rise, as at the time of writing, BNB was trending at #1 on CoinMarketCap. As per Santiment, sentiment around BNB also improved, as evident from the rise in its weighted sentiment.
However, BNB’s social volume remained low.
Investors should be patient
The testnet’s launch did not directly affect BNB’s price, as its daily chart was red. At press time, BNB was trading at $242.99 with a market capitalization of over $37 billion.
Read Binance Coin’s [BNB] Price Prediction 2023-24
Investors must remain patient, as the sideways price action might continue. As per Coinglass, BNB’s open interest increased in the last few days. An uptick in the metric usually means that the ongoing price trend might persist.
On top of that, BNB’s 1-week price volatility declined sharply. The token’s trading volume also diminished, further increasing the chances of continued slow-moving price action.