Aaryamann Shrivastava
FXStreet
- Binance Coin price rallied by more than 21% in the last ten days reaching $319.
- A breach of $332 by BNB could initiate some sell-off as investors would gun for profits for the first time in six months.
- Layer-2 solution Boba Network is set to be integrated into the BNB chain to scale dApps.
The Binance Smart Chain, also known as the BNB chain, is the second biggest DeFi blockchain in the world. However so, the chain did not have any layer-2 (L2) solutions, which Ethereum is primarily home to.
This changed on November 1 as Boba Network integrated with the BNB chain. This could potentially push the BNB price up and help it establish a new local top.
Boba comes to Binance Smart Chain
In a blog post on Tuesday, the multichain L2 network announced that Boba Network and BNB chain entered into a partnership. This will allow the L2 and L1 networks to commence their integration with a couple of DeFi protocols, including SushiSwap, set to launch on the BOBA BNB L2.
Being the first L2 on Binance Smart Chain, Boba will allow for the protocols on the chain to experience a faster and cheaper blockchain. The BNB chain is currently home to over 490 DeFi protocols, which hold a combined value of almost $6 billion.
Let's welcome BobaBNB!
— Boba Network x #BNBChain (@bobanetwork) November 1, 2022
We're excited to announce the launch of scaling solution for @BNBCHAIN!
BobaBNB caters to the massive user base and dev community enabling smarter contracts and lightning fast transactions ️
1/X pic.twitter.com/8IwGCbooJr
A faster and cheaper option for these protocols would boost the user numbers as well as attract more developers. This would make the BNB chain a solid competitor to Ethereum, which is currently the biggest DeFi chain with a total value locked on it exceeding $31 billion.
Moreover, this could also positively impact BNB’s price, further pushing its value.
Binance Coin price on the rise
BNB’s price had maintained a bullish stance throughout June until the breakdown in September following a rejection from the critical resistance of $332. This price point has remained unbreached for six months now. But with the recent 21.08% rise, BNB has inched closer to it.
A rise above $332 could see investors liquidating their holdings since the multi-month breakout would establish the new local top.
However, the $335 to $357 range is acting as resistance, which would make further rise difficult for BNB. If the altcoin was to fail the breach and declines, it would test $299 as the next support level. And a further drawdown would result in BNB retesting $259, a critical support level.
BNB/USD 1-day chart
This could be an opportunity for scalpers to scrape profits, but investors would be better off holding on to their BNB until the resistance block is cleared.
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