Nov 02, 2022
VOT Research Desk
Boba Network will be connected into the BNB chain in order to scale dApps.
The Binance Smart Chain, often known as the BNB chain, is the world’s second largest DeFi blockchain. However, the chain lacked any layer-2 (L2) solutions, which Ethereum is known for.On November 1, Boba Network joined with the BNB chain, which changed this. This has the ability to raise the BNB price and help it achieve a new local high. The multichain L2 network announced cooperation with Boba Network and the BNB chain in a blog post on Tuesday.
This will allow the L2 and L1 networks to begin integrating with a couple of DeFi protocols, notably SushiSwap, which is planned to launch on the BOBA BNB L2. As the first L2 on Binance Smart Chain, Boba will provide the protocols on the chain with a quicker and cheaper blockchain.
Currently, the BNB chain is host to approximately 490 DeFi protocols with a combined worth of about $6 billion. A speedier and less expensive option for these protocols would increase user numbers and attract more developers.
As a result, the BNB chain would be a strong competitor to Ethereum, which is now the largest DeFi network with a total value locked in excess of $31 billion.
Furthermore, this could have a favorable impact on BNB’s price, pushing its worth even higher.
Binance Technical Analysis
BNB’s price had been bullish from June till it broke down in September after a rejection from the important resistance level of $332.
For the past six months, this pricing point has remained unbroken. However, with the recent 21.08% increase, BNB has moved closer to it.If the price raises over $332, investors may sell their shares because the multi-month breakout would mark a new local high.
However, the $335 to $357 zone is functioning as barrier, making additional gains for BNB challenging. If the altcoin fails to break through and falls, it will test $299 as the next support level.
A further decline would send BNB down to $259, a vital support level.
This could be an opportunity for scalpers to make a quick buck, but investors would be wise to hold on to their BNB until the resistance level is broken.
