BNB [BNB] marked a promising performance lately, which has induced more hope for the token’s investors. In the last 24 hours, BNB registered more than 5% gains. This made the altcoin one of the top gainers in the top 10 crypto-list by market capitalization.
At the time of writing, BNB was trading at $278.74 with a market cap of $44,958,934,096. Though the volatility of the crypto market makes it difficult to pinpoint a particular reason for an uptick, Binance’s new network upgrade might have played a major role in BNB’s performance.
What’s with this update?
Binance recently announced the launch of its new zkBNB. The innovation aims to address the issue of blockchain scaling in the BNB chain. The zkBNB uses the same underlying Layer-1 security level as the BNB Smart Chain to ensure safe and secure building opportunities.
We're excited to announce a significant breakthrough for #BNBChain scaling and ZK innovation.
Introducing #zkBNB an industry leading zero-knowledge proof based scaling solution providing:
— BNB Chain (@BNBCHAIN) September 7, 2022
One of the notable advantages of the update includes increased scalability. Furthermore, the integration of payments and atomic swaps will be possible now. In fact, digital assets can be automatically swapped without authorization via built-in AMM swap and liquidity pools for DeFi use cases.
While talking about the developers who will benefit from this update, Binance mentioned in its official blog,
“Particularly those building NFT dApps will be keen to utilize zkBNB’s built-in NFT marketplace and API services, which allow teams to construct an ‘out-of-the-box’ marketplace for crypto collectibles and NFTs.”
BNB on the rise
The positive developments in the ecosystem have made an impact on the BNB. The token gained an upward momentum over the last day.
A look at BNB’s on-chain metrics also revealed a similar story. BNB’s development activity skyrocketed in the last few days. This complemented the new upgrade as it reflected the efforts of developers to improve the network.
Interestingly, BNB’s price hike was backed by the large volume, increasing the legitimacy of the surge.
The Market Value Realized Value (MVRV) Ratio also followed a similar route and went up. This increases the possibility of a further price hike in the coming days.
A wedge pattern formed on BNB’s daily chart, which somewhat backed the possibility of a northbound breakout soon. The Relative Strength Index (RSI) rested below the neutral 50 level. And, Chaikin Money Flow (CMF) complimented the expectation of a bull run ahead.
However, the Exponential Moving Average (EMA) Ribbon displayed a bearish crossover. This may lead to some disruptions in BNB’s uptrend.