Will new Binance Smart Chain [BSC] proposal increase BNB utility? Analyzing…
- Transactions on the Binance Smart chain may soon be more affordable.
- BNB demand saw resurgence as long-term traders held the line.
The Binance Smart Chain [BSC] was feeling the pressure as layer 2 networks turned up the heat. However, it strived to remain competitive, as evidenced by its latest announcement.
Realistic or not, here’s BNB market cap in BTC’s terms
The Binance Coin [BNB] chain has reportedly floated a new proposal that sought to lower gas fees on its network. According to the official announcement, the proposal was mostly fueled by the need to remain competitive.
The proposal was also a response to layer 2 networks, which have considerably lowered costs on networks such as Ethereum [ETH]. Thus, with the passing of the new proposal, users would experience lower transaction fees.
Did you know? ?
The official BNB Chain forum hosts proposals aimed at improving our network. Right now, we're discussing a proposal for adopting lower transaction fees to enhance our competitiveness.
Visit the link below and share your thoughts!https://t.co/ry7RyYyq0f
— BNB Chain (@BNBCHAIN) March 29, 2023
For the uninitiated, network efficiency and cost effectiveness determine a network’s attractiveness.
What would it mean for BNB if the proposal gets the green light?
One reason why lower fees are important is because they help the smart chain attract more users. This may facilitate more BNB utility, hence potentially boosting the level of adoption.
BNB had a bearish start this week as its price slid on Monday to a new seven-day low of $305. It has since then bounced back by roughly 3% to its $316 price tag. The slight upside occurred after bouncing back after retesting the 50% RSI level, as well as the 50-day moving average.
A broader price perspective revealed that the price was trading within a wedge pattern, underpinned by support and resistance lines. The price has been bearish for almost two weeks, after retesting the resistance line at $347.
An extended downside may cause a pullback below $300 and a potential support retest near $280. However, a strong bounce from the current level is also possible. For example, the mean coin age metric continued to rally despite the recent dip. This was a sign that long-term hodlers were holding at press time.
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BNB’s age consumed metric had a large spike on 28 March. This is around the same time that the price pivoted, suggesting that there was significant accumulation. At the same time, the number of active addresses soared.
The above observations reflected the favorable investor sentiment between 22 – 29 March. The weighted sentiment metric adopted an upward trajectory during the week, thus reflecting the bullish price action in the last two days.