BNB [BNB] has seen a promising performance lately, which has given more hope to the token’s investors. In the last 24 hours, BNB has recorded gains of over 5%. This made the altcoin one of the top gainers in the list of top 10 cryptocurrencies by market capitalization.
At the time of writing, BNB was trading at $278.74 with a market capitalization of $44,958,934,096. Although the volatility of the cryptocurrency market makes it difficult to pinpoint a specific reason for an uptick, Binance’s new network upgrade may have played a significant role in BNB’s performance.
What’s going on with this update?
Binance recently announced the launch of their new zkBNB. The innovation aims to address the issue of blockchain scale in the BNB chain. zkBNB uses the same underlying Layer-1 security as BNB Smart Chain to ensure secure construction opportunities.
We are excited to announce a breakthrough for #BNBChain scaling and ZK innovation.
Presenting #zkBNB a leading zero-knowledge scaling solution that provides:
— BNB Chain (@BNBCHAIN) September 7, 2022
One of the notable benefits of the update includes increased scalability. In addition, the integration of payments and individual exchanges will now be possible. In fact, digital assets can be automatically traded without authorization through built-in AMM and liquidity exchange pools for DeFi use cases.
Speaking about the developers who will benefit from this update, Binance stated on its official blog,
“Particularly those building NFT dApps will be eager to use zkBNB’s built-in NFT marketplace and API services, which allow teams to create an ‘out-of-the-box’ marketplace for crypto and NFT collectibles.”
BNB on the rise
Positive developments in the ecosystem have had an impact on BNB. The coupon won upward momentum in the last day.
A look at BNB’s on-chain metrics also revealed a similar story. BNB growth activity has skyrocketed in recent 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, increasing the legitimacy of the increase.
The Market Value Realized Value Ratio (MVRV) also followed a similar path and rose. This increases the possibility of further price increases in the coming days.
A wedge pattern formed on BNB’s daily chart, which somewhat supported the possibility of a breakout to the north soon. The Relative Strength Index (RSI) remained below the neutral level of 50. And, Chaikin Money Flow (CMF) praised the expectation of a bull run ahead.
However, the exponential moving average (EMA) ribbon showed a bearish crossover. This may lead to some disruptions in BNB’s uptrend.