Key Points
- BNB Chain’s latest upgrade, BEP 336, could potentially reduce its revenue due to a 90% fee reduction for users.
- Despite the potential revenue loss, trader sentiment remains positive, indicating that BNB’s price could retest the $600 mark.
BNB Chain, a decentralized blockchain ecosystem, recently introduced a significant update on 20th June.
The update, known as BEP 336, allows network users to make transactions at a 90% fee reduction.
This move mirrors Ethereum’s Dencun upgrade, which also resulted in lower gas fees. BNB Chain openly acknowledged the influence of the EIP4844 in their decision to implement BEP 336.
Impact on Revenue and Price
However, this development could potentially impact BNB Chain’s revenue. Transaction fees contribute significantly to the project’s revenue, and a further reduction in these fees could lead to another drop.
The price of BNB, which at the time of the report was $585.37, could also be influenced by this development.
On the flip side, lower transaction fees could increase demand for the BNB cryptocurrency. If this happens, the price of BNB could potentially approach its previous all-time high of $720.67.
Development Activity and Trader Sentiment
Development activity, which measures the work done in a project’s public GitHub repositories, has seen an increase for BNB. This could imply an increase in developer dedication, which could be a bullish sign for the coin’s price.
Another important metric to consider is the Funding Rate. According to Coinglass, BNB’s Funding Rate was 0.0020%. This positive value indicates a premium on the contract price compared to the spot price, suggesting bullish trader sentiment.
Therefore, the current Funding Rate implies that the average trader expects BNB’s price to increase.
However, for the price to actually increase, buying pressure in the spot market needs to rise. If this happens, BNB’s price could surpass $600 in the short term. If not, the coin’s price might drop to $570.
