What Factors Led to Binance (BNB) Experiencing a Surge of Over 40% in Price Today?
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Key Takeaways
BNB has seen a significant surge of over 43% this week, reaching $613, driven by the introduction of the BEP 336 upgrade.
The BSC roadmap includes the integration of BEP 336, starting with a testnet in April.
Technical analysis suggests that if BNB surpasses $631, it may test the $675 resistance level.
BNB, the token that powers the BNB Chain, has experienced an impressive surge of over 43% this week, reaching $613, a price it last reached in December 2021. This surge coincides with the announcement of the “BEP 336 upgrade,” which aims to optimize data storage and processing on the BNB Chain, inspired by Ethereum’s Dencun upgrade (EIP 4844).
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Introduction of the BEP 336 Upgrade
The BEP 336 upgrade introduces a groundbreaking concept called “Blob-Carrying Transactions” (BlobTx), which revolutionizes the handling of large data blocks on the Binance Smart Chain (BSC). Blobs are temporary and cost-effective memory segments that efficiently capture data blocks up to 128 KB, simplifying transaction verification.
This innovative approach reduces network space consumption, providing users with lower storage costs and more affordable gas fees, similar to the Ethereum Dencun upgrade.
The BEP 336 upgrade also brings two new features. The first is the Blob Market, which regulates storage costs, and the second is the introduction of a Precompile Contract for enhanced security.
Roadmap for BEP 336 Integration
The BSC has outlined its strategy for integrating BEP 336, starting with the release of a testnet in April. This will be followed by a magnet phase in May for further testing and optimization. The official deployment will take place in June with the Mainnet hard fork, aimed at improving network quality and scalability.
The development of the BEP 336 upgrade is expected to greatly benefit developers and users of the BSC ecosystem. It promises lower gas fees, increased blockchain flexibility, and improved network performance, making BSC more accessible to developers and newcomers.
Where is BNB Heading?
According to technical analysis, Binance’s price will experience a bullish move if it surpasses the $631 resistance level, potentially testing the upper resistance at $675. If the price continues to hold at this level, it could reach $700.
However, with the announcement of the BEP 336 upgrade, the price of Binance Coin (BNB) surged by more than 14% to $613.