• Binance Coin had a positive reaction to the Kepler hard fork activating on the testnet on Tuesday.
  • The update is set to align BNB Smart Chain with the Ethereum Shanghai upgrade, improving EVM compatibility.
  • The BSC team also announced that by May 2024, the BNB Beacon Chain will be retired, citing it to be redundant.

The world’s third biggest Decentralized Finance (DeFi) chain, BNB Smart Chain (BSC), formerly known as Binance Smart Chain, is preparing to bring itself into the same league as Ethereum. The chain is set to undergo a crucial upgrade next month, which is fielding positive reactions presently after going live on testnet.

Binance brings its ‘Shanghai’ upgrade

Binance BSC is scheduled to witness the arrival of the Kepler hard fork on January 23, 2024, but before the upgrade hits the mainnet, it will be making its presence felt on the test net. The Kepler hard fork for the latter was activated on Tuesday as per the plan and is currently being tested by developers and users.

The Kepler hard fork, in many ways, is the Shanghai upgrade of Binance since this hard fork will align the DeFi chain with the recent changes noted on Ethereum. As staking withdrawal, along with other updates, came to Ethereum with the Shanghai hard fork, the Kepler upgrade will align BSC with the same changes.

One of the key features for BSC will be Fast Finality, which will be focused on incentivizing validators efficiently, which will ensure faster and more reliable transaction confirmations. Furthermore, Kepler will improve the EVM (Ethereum Virtual Machine) compatibility of the BSC.

But beyond this update, Binance is also set to retire BNB Beacon Chain by April and May next year. As part of its Fusion Roadmap, the Beacon Chain was designed as a staking and governance layer.  

However, as per Binance, the evolution of BSC and changes in the blockchain landscape has made the Beacon Chain redundant. This has also introduced development complexities and security vulnerabilities.

Thus, to fix this, Binance will be retiring the chain in phases by May 2024, with the first phase set to go live in April 2024. The update titled “Sunsent fork” will first disable cryptocurrency issuance and minting features as well as BSC validator creation in April 2024. This will be followed by three other updates, with the final sunset form set to take place a month later, which will halt the Beacon Chain.

Binance Coin price poised to go higher

Interestingly, the Binance Coin price had a bullish day despite the Beacon Chain retirement announcement. The altcoin made it back up above $250 to trade at $252 at the time of writing and tested $255 as a resistance level for the fifth time in the past month and a half.

This barrier has not been surpassed since the beginning of November this year but is expected to be broken this time around. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators suggest bullishness is running high currently. 

This will not only push BNB through $255 but also set the altcoin up for reclaiming $264 as support to mark a six-month high.

BNB/USD 1-day chart

BNB/USD 1-day chart

However, if the breach fails, Binance Coin could retrace to $231 and remain consolidated, but losing this support level would invalidate the bullish thesis and bring BNB down to $219.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Crypto Today: Bitcoin, Ethereum and XRP gain on Friday, meme coin NEIRO erases recent gains

Crypto Today: Bitcoin, Ethereum and XRP gain on Friday, meme coin NEIRO erases recent gains

Bitcoin steadies above $60,000 on Friday, gains over 1% on the day. Ethereum trades above $2,400, while BlackRock Spot Ethereum ETF sees a $17.8 million inflow on Thursday. XRP is back above $0.5300 as Ripple files cross-appeal in SEC lawsuit.

More Cryptocurrencies News
Cardano celebrates milestone: Hosts Argentina’s first legally enforceable smart contract

Cardano celebrates milestone: Hosts Argentina’s first legally enforceable smart contract

Cardano ambassador Mauro Andreoli recently announced Cardano’s milestone of Argentina’s first legally and judicially enforceable contract. The first loan agreement in Cardano under Argentine law involves a loan of 10,000 ADA tokens, currently valued at $3,380.

More Cardano News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC finds support around $60,000

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC finds support around $60,000

Bitcoin is finding support around the key level, and a close below this level could signal a decline. Ethereum is approaching a critical resistance barrier; rejection from this level suggests a decline ahead. Meanwhile, Ripple is stuck in a range, reflecting a period of indecision among traders.

More Cryptocurrencies News
SEC sues Cumberland DRW for acting as an unregistered securities broker, Solana ETFs at risk

SEC sues Cumberland DRW for acting as an unregistered securities broker, Solana ETFs at risk

SEC sued crypto trading company Cumberland DRW for allegedly acting as an unregistered broker. Solana was among five cryptocurrencies the SEC alleged to be securities sold via the platform.

More Cryptocurrencies News
Bitcoin: Is BTC sell-off over?

Bitcoin: Is BTC sell-off over?

Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.

Read full analysis
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

BTC

ETH

XRP