Will This New Development Propel BNB Price To New All-Time High?
The BNB Smart Chain (BSC), which is widely regarded as one of Ethereum’s most formidable competitors, is currently contemplating a new governance proposal that, if approved, will reduce the costs of transaction fees on the chain. This will ultimately benefit the network by increasing its competitiveness in comparison to its contemporaries.
New Governance Proposal For Lowering Fees
The recently submitted proposal states that BSC needed “a more flexible transaction fee structure” to assure effective block allocation and make it more appealing to new users. The reduced costs would further assist the BNB economy and boost BSC’s position in the crypto market, according to the new proposition.
Read More: Bitcoin Price Reclaims $28,500 Amid Binance FUD, Here’s Why
While transactions on the BSC network incur a flat fee of 5 gwei, Layer-2 solutions that exist outside of BNB ecosystems, such as Arbitrum (ARB), levy fees that are far more reasonable. According to data obtained from crypto analytics firm Nansen, the gas fee for Arbitrum’s median is set at 0.1 gwei at the time o writing.
Possible BNB Price Rally?
The proposal claims that network activity on the blockchain has decreased as a result of BSC’s high gas pricing. According to the information provided, BSC’s utilization in the overall crypto space is somewhere between 15 – 20% and could get worse if the network does not reconsider its high gas prices.
The user proposal was quoted as saying:
Over the last 6 months, the key measurements of the network have plateaued, creating a situation where the network is underutilized.
The Binance community and the larger crypto market have responded favorably to the new proposal, and market participants are of the opinion that this may eventually result in a bullish scenario for Binance’s native token, BNB. As things currently stand, the price of BNB is exchanging hands at $316, which represents a gain of 1.46% over the previous 24 hours in contrast to a decline of 3.82% over the last seven days.
Also Read: Ripple Lawsuit Pending Verdict Fueling XRP Price?
- Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
