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BNB rises as Chain optimizes BSC network amid high fees

Published 17/02/2025, 14:32
BNB rises as Chain optimizes BSC network amid high fees
BNB US Dollar
2.94%

BNB Chain, the blockchain network behind Binance's native cryptocurrency BNB, introduced a new optimization to its Binance Smart Chain (BSC) network. This update comes as the platform experiences increased speculation around memecoins, which has led to higher gas fees and some congestion issues.

BSC validators, who previously stopped evaluating bids once the block limit was reached, will now be able to consider more bids within the same three-second block time. This change aims to prioritize time-sensitive transactions, such as memecoin trades, which had struggled to be included in blocks during peak periods despite users paying higher transaction fees for faster processing.

BNB Chain explained that the new system is designed to improve the network's performance, especially during times of high activity, by allowing validators to include the best bids and prioritize transactions involving time-sensitive contracts, like those for memecoin trading.

The move to optimize the BSC network follows a significant increase in transaction fees on BNB Chain. Over the past week, users have spent nearly $15 million in transaction fees, a figure that is more than double that of Ethereum's and second only to Solana's. This represents a 388% increase from the previous period. The spike in fees coincides with a surge in BNB's price and a 114% increase in BSC's fees over the past week.

The growth in network activity and fees has been attributed to various factors, including a temporary halt in Binance's legal proceedings with the SEC and a wave of new memecoins inspired by Binance founder Changpeng "CZ" Zhao's dog, Broccoli. These developments have also positively impacted the decentralized exchange PancakeSwap, which operates on the BNB Chain.

CZ has hinted at further developments for the network, encouraging continued building and innovation within the BNB Chain ecosystem.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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