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Tuesday, November 24, 2020

Binance Coin (BNB) price erupts 18% as the platform rolls out Binance Smart Chain

  • The exchange presented Binance Smart Chain, a parallel blockchain to Binance Chain used for smart contracts
  • BNB/USD price has gained nearly 20% today as the buyers fight back amid a strong downtrend
  • Buyers are fighting to secure a daily/weekly close above the descending trend line at $21.50

Binance Coin (BNB/USD) price has rebounded strongly today as the buyers attempt to erase losses from the past few days. The exchange rolled out the Binance Smart Chain (BNS), which is a parallel blockchain to the Binance Chain utilized for smart contracts.

Fundamental analysis: BNS helping dApp developers

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As Invezz reported a few days ago, Binance presented Binance Smart Chain to provide dApp developers with more freedom to create on the network. In a blog post, Binance noted that the idea of launching the new smart chain was presented in April last year.  

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The new blockchain will provide dApp developers with more freedom to create on the network. In the blog post, Binance noted that the idea of launching the new smart chain was presented in April last year.  

‘’In April, the Binance Chain development team proposed the idea of a parallel blockchain of the current Binance Chain to retain the high performance of the native DEX blockchain and to support a friendly Smart Contract function at the same time,’’ wrote Binance in the post.

The key objective of the parallel blockchain is to enable EMV-compatible programmability and cross-chain communication on the Binance Chain, as noted in the Binance Smart Chain whitepaper. The exchange initiated the first testnet for the new project called Rialto which included the faucet and open-source of the codebase. 

Rialto was followed by Chapel testnet which brought the native cross-chain transfer of BEPS tokens. This testnet then underwent a hard fork as a part of the Ramanujan update.

One of the key advantages of the new parallel blockchain is its incredible performance, thanks to the use of Delegated Proof of Stake (DPoS) and Proof of Authority (PoA). The network is built on a high-performance infrastructure and has 21 validators, allowing it to create a block in three seconds. 

Furthermore, validators who use the chain will receive awards in BNB, Binance’s native token. With the rollout of the Binance Smart Chain, the two Binance’s blockchains own more than 30 wallet providers. Binance Chain accommodates more than 600,000 consumers plus 15 million users on Binance who could start using the chains.

Technical analysis: Buyers respond 

BNB/USD price has gained nearly 20% today as the buyers fight back amid a strong downtrend that has been initiated in the entire crypto market in the past few days. The bulls have managed to erase more than half of recent losses to make BNB the best performer of the day. 


screen shot 2020 09 06 at 7 06 21 pm
Binance Coin daily chart (TradingView)

For the buyers, it’s important to secure a daily/weekly close above the descending trend line at $21.50. A confluence of two major moving average lines on a daily chart provided support to the bulls near the $18.00 mark. On the upside, the zone (painted rectangle) above $26 remains a key target for BNB investors.

Summary

Cryptocurrency exchange Binance launched the parallel blockchain called Binance Smart Chain, built for smart contracts. In the meantime, BNB/USD gained nearly 20% today to erase most of this week’s losses.

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