Binance Coin (BNB) has surged significantly following an initiative from Binance founder Changpeng Zhao to reduce gas fees.
BNB Price Increase
On May 9, BNB's price climbed to $642.92, rising over 10% within 24 hours. This uptick followed a proposal from Changpeng Zhao (CZ) to cut gas fees on the Binance Smart Chain by 90%.
CZ's Fee Reduction Proposal
Changpeng Zhao submitted the Binance Evolution Proposal (BEP-336) aimed at reducing gas fees by 90%. The proposed changes seek to lower transaction costs and enhance BNB Smart Chain's competitiveness against Solana and Ethereum. The current gas model on Binance Smart Chain employs a fixed base fee plus a priority fee.
Technical Analysis and Prospects
The four-hour chart indicates a breakout with a volume of 34,190 BNB. The 50-period Exponential Moving Average was at $607.82, confirming bullish momentum. The RSI reached 78.42, suggesting strong bullish momentum and overbought conditions. Some analysts forecast that BNB may test the $700 mark if Binance validators approve the proposed BEP-336 transaction model.
The fee reduction proposal has the potential to significantly impact BNB usage dynamics, fostering its growth and competitiveness in the market.
