BNB [BNB] marked a promising performance of late, which has given more hope to investors in the token. In the last 24 hours, BNB recorded more than 5% gains. This made the altcoin one of the top gainers in the top 10 crypto list by market cap.
At the time of writing, BNB is trading at $278.74 with a market cap of $44,958,934,096. Although crypto market volatility makes it difficult to pinpoint a specific reason for an uptrend, Binance’s new network upgrade may have played a major role in BNB’s performance.
What is this update all about?
Binance recently announced the launch of its new zkBNB. The innovation aims to address the issue of blockchain scaling on the BNB chain. The zkBNB uses the same underlying Layer 1 security layer as the BNB Smart Chain to ensure safe building opportunities.
We are excited to announce a major breakthrough for #BNBChain scaling and ZK innovation.
Introducing #zkBNB, an industry-leading zero-knowledge proof-based scaling solution that offers:
🔸Advanced scalability
🔸Transaction speed
🔸Faster finality
🔸Unmatched security
[1/9]🧵 pic.twitter.com/jdIa3M8OlK
— BNB Chain (@BNBCHAIN) September 7, 2022
One of the notable benefits of the update is increased scalability. In addition, the integration of payments and atomic swaps will now be possible. In fact, digital assets can be exchanged automatically without permission via built-in AMM swap and liquidity pools for DeFi use cases.
While talking about the developers who will benefit from this update, Binance mentioned on its official blog:
“In particular, those building NFT dApps will be interested in leveraging zkBNB’s integrated NFT marketplace and API services, which allow teams to build an out-of-the-box cryptocurrency marketplace. Build collectibles and NFTs.”
BNB on the rise
The positive developments in the ecosystem have had an impact on the BNB. The token won an upward move over the last day.
Source: CoinMarketCap
Looking at BNB’s on-chain metrics also revealed a similar story. BNB development activity has skyrocketed over the past few days. This complemented the new upgrade as it reflected the developers’ efforts to improve the network.
Interestingly, the BNB price increase was supported by the large volume, which increased the legitimacy of the increase.
The Market Value Realized Value (MVRV) ratio also followed a similar path and increased. This raises the possibility of another price increase in the coming days.
Source: Santiment
There is a wedge pattern forming on the BNB daily chart, giving some support to the possibility of a northbound breakout any time soon. The Relative Strength Index (RSI) was below the neutral 50 level. And Chaikin Money Flow (CMF) added to the expectation of an upcoming bull run.
However, the Exponential Moving Average (EMA) band showed a bearish crossover. This could cause some disruptions in BNB’s uptrend.
Source: TradingView
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