All of the Binance coin holders can now enjoy new utility as Binance enters in direct competition with Ethereum by entering into the smart contracts market as we are reading in the BNB coin news below.
The crypto exchange Binance is preparing to enter the territory of the smart contract by launching a new Ethereum-compatible blockchain which is expected to increase the utility of the native token of the platform, the Binance Coin, which is also expected to increase in price. Binance announced the introduction of the Binance Smart Chain which will run in parallel to the current Binance Chain and will provide support for smart contracts. The crypto exchange revealed that BSC will employ programmability features along with interoperability features of the Ethereum Virtual Machine, according to the whitepaper:
“BSC chooses to be compatible with the existing Ethereum mainnet. This means most of the dApps, ecosystem components, and toolings will work with BSC and require zero or minimum changes.’’
The Binance Chain development community will have to maintain the new blockchain and will work to boost the developers to build their decentralized applications and assets on top of the BSC. The Binance coin holders will enjoy the new utilities as the coin will help power the BSC. BNB will be used as the gas needed to complete a transaction or to run a contract on the new protocol:
“[This is an] attractive opportunity for all BNB holders who are interested in staking BNB to support the development of Binance Smart Chain and earn rewards.’’
BNB is a non-inflationary token so this means that the number of holders on the network who want to stake their rewards, will have serious implications of the price of the token. From a technical perspective, BNB continued with a descending parallel channel since 2019 and every time the cryptocurrency rises to the upper boundary of the channel, it declines and reaches the bottom. However, after this level, the token bounces back again. These are the primary characteristics of the channel. Binance Coin even surged by 150 percent as of March 12 and it managed to move back above the midline of the channel.
BNB could even go up to test the resistance that was provided by the upper boundary of the channel which could determine the path of the token.