Tech

Is BNB Chain’s new proposal good news for BNB?

11 months ago
Bitcoin Ethereum News

Journalist

Posted:


  • The proposal aimed to give BNB Chain the discretion to seize BNB Bridge exploiter’s collateral. 
  • BNB Chain’s network activity remained high, but the coin was down 2% in the last 24 hours. 

BNB Chain [BNB] recently submitted a proposal that aimed to somewhat reduce the coin’s liquidation for a key purpose. If passed, the proposal might have a larger impact on the coin’s price.

All about BNB Chain’s new proposal

BNB Chain recently published a proposal on the Venus forum. As per the official post, the proposal aims to give BNB Chain the discretion to seize the BNB Bridge exploiter’s collateral and repay its debts while avoiding any market liquidation of BNB.

It presented a plan to safely reduce the exploiter’s debts and potentially address the Venus Protocol’s shortfall. This will be achieved by using the exploiter’s funds.

The proposal also mentioned that, as of the 11th of December, the exploiter’s balance held 630,240.00 BNB as supply, along with 58,440,000 Tether [USDT] and 37,440,000 USD Coin [USDC] as borrow.

Since this proposal aims to reduce liquidation, it can somewhat have a positive impact on BNB’s price, as less liquidation can generally lead to less volatility.

BNB’s chart is red

As of the time of this writing, BNB was down by more than 2% in the last 24 hours. According to CoinMarketCap, at press time, BNB was trading at $241.66 with a market cap of over $36.6 billion, making it the fourth-largest crypto.

Source: CoinMarketCap

The good news was that while the coin’s price dropped, its Funding Rate also declined. This meant that the Futures investors were not buying BNB at its lower price at the time of the report. This signaled the potential for a trend reversal soon.

Source: Coinglass

How is BNB Coin doing on the network front?

Apart from the above-mentioned proposal, BNB Chain recently posted a tweet revealing its weekly report. Notably, in the last seven days, BNB’s weekly transactions reached 36.89 million, with an average daily transaction of 6.14 million.

 

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The blockchain’s weekly average users stood at 3.24 million, while its daily average users were 959,000. Stats aside, the report also revealed details of some newly launched dApps on the blockchain.

These dApps included Hacash and Openfort, which operate in the infrastructure space, and Gabby World, a SocialFi dApp.

Source: https://ambcrypto.com/is-bnb-chains-new-proposal-good-news-for-bnb/