BNB Eyes $700 as CZ Pushes 90% Binance Chain Fee Cut

On May 9, Binance Coin (BNB) climbed to $642.92, rising over 10% in 24 hours. The price rally followed a proposal from Binance founder Changpeng Zhao (CZ) to cut gas fees on Binance Smart Chain (BSC) by 90%. The four-hour chart showed a breakout with volume reaching 34,190 BNB. The 50-period Exponential Moving Average (EMA) stood at $607.82, confirming bullish momentum. CZ Proposes 90% Gas Fee Cut for BNB Smart Chain via BEP-336 Changpeng Zhao submitted a Binance Evolution Proposal (BEP-336) to reduce gas fees on the Binance Smart Chain by 90%. The proposed change aims to lower transaction costs and improve competitiveness against Solana and Ethereum. BNB Smart Chain’s current gas model uses a fixed base fee plus a priority fee. CZ’s plan includes replacing the fixed fee with a blob-carrying transaction format. This format is similar to Ethereum’s Proto-Danksharding introduced via Ethereum Improvement Proposal (EIP-4844) in March 2024. The blob-carrying transaction model allows blockchains to store more data at lower costs. It enables better scalability and faster throughput. On Ethereum, Proto-Danksharding reduced Layer 2 fees by over 90%. CZ’s proposal brings this structure to the BNB Smart Chain as well. If the community approves it, the change could drop average BSC transaction fees to just 0.0005 BNB from the current 0.005 BNB. BNB Momentum Builds as RSI Signals Overbought Zone BNB’s price rally also reflected in technical indicators. The Relative Strength Index (RSI) on the four-hour chart surged to 78.42 on May 9, crossing the key threshold of 70. This indicates overbought conditions, typically seen during strong upward price trends. The RSI moving average also reached 66.64, supporting bullish momentum. The rising RSI aligns with BNB’s sharp price breakout and high trading volume. It highlights intensified buying pressure and reinforces expectations of further upside movement. If current momentum holds, BNB could approach the $700 mark. That level was last tested in early 2022. The next price move now depends on the outcome of the community vote on Binance Evolution Proposal 336 (BEP-336). Binance Chain validators will decide whether to adopt the new fee model through a hard fork. A successful vote could expand BNB’s role in decentralized applications by reducing average transaction costs by 90%. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.