Ethereum

Impact

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>BNB Chain’s latest upgrade, BEP 336, could potentially reduce its revenue due to a 90% fee reduction for users.</li> 
 <li>Despite the potential revenue loss, trader sentiment remains positive, indicating that BNB’s price could retest the $600 mark.</li> 
</ul>  
<p>BNB Chain, a decentralized blockchain ecosystem, recently introduced a significant update on 20th June. </p> 
<p>The update, known as BEP 336, allows network users to make transactions at a 90% fee reduction. </p> 
<p>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. </p> 
<h2 id="impact-on-revenue-and-price">Impact on Revenue and Price</h2> 
<p>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. </p> 
<p>The price of BNB, which at the time of the report was $585.37, could also be influenced by this development. </p> 
<p>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. </p> 
<h2 id="development-activity-and-trader-sentiment">Development Activity and Trader Sentiment</h2> 
<p>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. </p> 
<p>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. </p> 
<p>Therefore, the current Funding Rate implies that the average trader expects BNB’s price to increase. </p> 
<p>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. </p>

Does BNB Chain’s Latest Upgrade Echo Ethereum and Influence Its Price?

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CoinEagle.com

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