The BNB price has drifted upwards in the past few days as the crypto market has remained in a tight range, with Bitcoin hovering above $84,000. BNB was trading at $592 on Sunday, up by about 18% from the lowest level this year. This article explores the potential scenarios for the Binance coin ahead of the Lorentz upgrade.
BSC Lorentz hard fork ahead
The next important catalyst for the BNB price is the upcoming Lorentz upgrade and hard fork. In an X post, the developers noted that the opBNB hard fork would happen on April 21 this year. It will be followed by the BSC hard fork on April 29.
Lorentz mainnet hardforks are coming:
• opBNB → April 21 @ 03:00 AM UTC
• BSC → April 29 @ 05:05 AM UTC
Testnet is live with faster blocks. Node operators + devs, make sure you’re ready.
Full details in the post below 👇
The goal of the Lorentz hard fork is to make the network faster as it seeks to become a better alternative to Ethereum and Solana.
The Lorentz hard fork comes a month after the developers implemented the Pascl hard fork. Pascal’s goal was to help it integrate more with Ethereum, the biggest chain in the crypto industry. It improved the Ethereum Virtual Machine (EVM) compatibility, optimized gas fes abstraction, and added a feature to avoid block calculation errors.
The Lorentz upgrade’s goal is to dramatically reduce the block times of the BSC Chain to about 1.5 seconds.
It will then be followed by the Maxwell upgrade that will drop the block times further from 1.5 to 0.75. These upgrades will make the BSC Chain one of the fastest chains in the crypto industry. Historically, crypto prices do well ahead of a major network upgrade.
Most notably, BSC hopes to be the best alternative to Solana and Ethereum. Solana’s network has become clogged by meme coins, while Ethereum is being destroyed by layer-2 networks like Base and Arbitrum.
Read more: BNB price analysis: here’s why Binance coin is about to soar
Staking inflows and BNB burn
The other potential catalyst for the BNB price is that its staking inflows has been positive in the past few days. This staking market cap rose by 1.3% in the last 24 hours to over $18 billion. It has brought the staking ratio to 20.8%.Recent data by StakingRewards shows that the inflows have increased gradually. BNB has a staking yield of about 3.5%, making it higher than Ethereum’s 3.14%.
At the same time, BNB has become one of the most deflationary tokens in crypto. It achieves this by its real-time burn mechanism that incinerates hundreds of tokens worth over $366k a week. This burn is derived from the gas fees the network handles.
The network also has a quarterly burn that incinerates tokens worth over $1 billion a quarter. These token burns will continue in the foreseeable future as the network works to reduce the number of coins from over 144 million to 100 million.
Read more: Top cryptocurrencies to watch: Sonic, XRP, Cardano, Solana
BNB price analysis
Binance coin price chart | Source: TradingView
The daily chart above is sending mixed signals about the BNB price. It has formed a symmetrical triangle pattern whose two trendlines are nearing their confluence level. This triangle can break out in either direction.
The BNB price has also formed a death cross as the 50-day and 200-day moving averages have crossed each other. This pattern often leads to a bearish breakdown over time.
At the same time, the ongoing consolidation is part of the formation of the handle section of the cup and handle pattern on the weekly chart. Therefore, the outlook for the BNB price is neutral for now. More gains will be confirmed if the BNB price surges above the key resistance level at $720, the highest swing in June.
The post BNB price prediction ahead of the Lorentz hard fork appeared first on Invezz