The Binance Coin price has held steady in the past few weeks as demand for the coin continue rising. The BNB coin has risen for three consecutive weeks, moving from a low of $507 on March 10 to the current $630. So, what’s next for the Binance Coin in the coming months?
BSC aims to be the best alternative to Solana and Ethereum
The BNB token has risen in the past few weeks as the Binance Chain seeks to become the most viable alternative to Solana and Ethereum.
Solana’s reputation has worsened in the past few weeks because of its meme coin ecosystem. Its meme coin market cap has plunged from over $30 billion in January to about $8 billion today.
Ethereum, on the other hand, is known for its slow speeds and high fees. While the transaction costs differ over time, data shows that Ethereum is one of the most expensive chains in the industry.
BSC Chain is working to be the best of these chains. Just last week, the network launched the Pascal upgrade that introduced enhanced Ethereum compatibility, making it one of the earliest chains to adopt the Ethereum Virtual Machine (EVM) environment. As such, dApps developed on BSC are now interoperable with Ethereum.
The upgrade also introduced the native smart contract wallets, which enable gasless transactions, batch approvals and transactions, and multi-signature support.
The Pascal upgrade is one of the few updates scheduled to happen in the coming months. Lorentz will happen in April and reduce the average block reward time to 1.5 seconds, while the Maxwell update will happen in June and reduce these block times to 0.75 seconds.
These upgrades mean that developers will have a choice for building on a layer-1 network that has low fees, fast transaction speeds, and compatibility with Ethereum. Analysts believe that this is a better model than using a layer-2 network like Base and Arbitrum.
BSC ecosystem is growing
Third-party data shows that the BSC ecosystem is growing. According to DeFi Llama, the network has over 863 DeFi applications that have a total value locked (TVL) of over $5.37 billion. The bridged TVL stands at $12.85 billion, while the stablecoin market cap has jumped to over $7 billion.
The biggest players in the BSC ecosystem are Venus, PancakeSwap, Kernel, Lista DAO, and Avalon Labs.
Venus is a lending platform with over $1.73 billion in assets, while PancakeSwap is one of the biggest DEX networks in crypto.
As shown below, the number of BSC transactions has risen. It has constantly handled over 7.36 million transactions a day, making it one of the most popular chains in the crypto industry.
These transactions are coming from different areas. For example, data shows that the BSC Chain’s DEX volume has risen by over 20% in the last seven days to over $13.2 billion, bringing the 30-day figure to $50.2 billion.
BNB price analysis
BNB price chart | Source: TradingView
The weekly chart above shows that the BNB price has formed two notable bullish patterns that point to more gains ahead. It is now in the process of forming an ascending triangle pattern, which is made up of a horizontal line and an ascending trendline.
BNB price has also formed a cup and handle pattern whose upper side is at $665. A C&H pattern is one of the most bullish patterns in the market. BNB remains above the 50-week and 25-week moving averages.
Therefore, the BNB price will likely have a strong bullish breakout in the coming months. This breakout may take it to the key resistance at $1,000. However, the forecast may take time because it is based on the weekly chart, whose signals take a long period to happen.
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