BNB Price Surges by 43% Following BEP 336 Upgrade Announcement; Should Investors Consider Buying?
Binance Coin (BNB) has experienced a remarkable surge of 43% this week, reaching $613, a level not seen since December 2021. This surge coincides with the introduction of the “BEP 336 upgrade,” which aims to enhance data storage and processing on the BNB Chain. The upgrade takes inspiration from Ethereum’s Dencun upgrade (EIP 4844).
The BEP 336 upgrade brings forth the concept of “Blob-Carrying Transactions” (BlobTx), which revolutionizes the handling of large data blocks on the Binance Smart Chain (BSC). Blobs are temporary memory segments that efficiently manage data blocks up to 128 KB, making transaction verification more streamlined. This innovative approach reduces network space usage, resulting in lower storage and gas costs for users, similar to Ethereum’s Dencun upgrade.
In addition to the BlobTx concept, the BEP 336 upgrade introduces two new features: the Blob Market, which regulates storage costs, and the Precompile Contract, which enhances security.
The integration of BEP 336 will be implemented in a strategic manner. A testnet will be delivered in April, followed by a magnet phase for further testing and optimization in May. The official deployment will take place in June with the Mainnet hard fork, aimed at improving network quality and scalability. This upgrade is expected to benefit developers and users within the BSC ecosystem by offering lower gas fees, increased blockchain flexibility, and improved network performance.
Technical analysis suggests that if Binance’s price surpasses the $631 resistance level, it could experience bullish momentum and aim for $675. If the price can maintain stability at this level, it may even reach $700.
The announcement of the BEP 336 upgrade has had a significant impact on the BNB ecosystem, as evidenced by the 14% surge to $613. The future looks promising for Binance Coin as it continues to make strides in enhancing its capabilities and attracting more users.