The native asset of the Binance-backed BNB Chain, $BNB, has seen its price surge up to 6% over the last 24-hour period after the blockchain network announced it’s embracing zero-knowledge (ZK) rollups, which can speed up transaction times and reduce fees.
According to CryptoCompare and TradingView data, BNB is currently trading near the $280 mark, up from around $260 earlier this week. The cryptocurrency’s price surged after BNB Chain, Binance’s layer-1 blockchain, announced it would support the technology.
The upgrade is expected to allow BNB to process between 5,000 and 10,000 transactions per second, vastly outperforming the blockchain’s current capabilities. BNB Chain, it’s worth noting, is the largest smart contract network in terms of users and transaction volumes, although Ethereum’s $34 billion in total value locked dwarfs the $5.3 billion on BNB Chain.
According to CoinDesk, Binance announced that the move will essentially mean a separate blockchain where transactions can be offloaded and processed much faster and for a smaller cost is being launched, with the results being pushed to BNB,
The cryptocurrency exchange’s move follows ZK rollups gaining traction on the Ethereum network as well. Rollups, it’s worth noting, bundle up transactions and process them on a faster and more efficient layer-2, before handing the results back to the layer-1.
Also read: Guide to Binance Identity Verification: How Long Does It Take?
As CryptoGlobe reported the BNB Chain, formerly known as the Binance Smart Chain, has been outperforming other Ethereum ($ETH) competitors in what has been dubbed a “breakout year,” in part when it comes to its non-fungible token (NFT) market.
BNB Chain’s non-fungible token sector has experienced exponential growth so far this year, with a significant rise in secondary sales volumes and the number of unique NFT buyers on the network.
