BNB’s Beacon Chain Experiences a Temporary Halt, and This is How BNB Reacted
BNB’s Beacon Chain recently experienced a temporary halt lasting around 30 minutes. This caused negative sentiments around BNB to dominate the market, and indicators looked bearish. However, the issue was quickly fixed by developers. Let’s take a closer look at the situation.
A Glance at the BNB Beacon Chain
The Beacon Chain is a blockchain developed by the BNB community that implements the staking and governance layer of the BNB ecosystem. The chain uses Tendermint for consensus, and app logic is built upon the Cosmos SDK, targeting fast block times and others.
A few weeks ago, the BNB Smart Chain performed the ‘Plank’ hard fork, strengthening the cross-chain bridge between the Beacon Chain and the Smart Chain by adding various features. As of now, the Beacon Chain has processed over 2 million transactions and has over 90,000 addresses.
Did the Halt Affect the BNB Chain?
The recent halt did not seem to have any impact on BNB Chain’s metrics, which was a positive signal. On the contrary, growth was noted on a few fronts.
Token Terminal’s data revealed that BNB’s daily active addresses and fees increased slightly in the last few days, suggesting higher usage of the network.
BNB Goes Down
Although BNB Chain’s stats remained unaffected, BNB registered a decline in its price. According to CoinMarketCap, BNB was down by 2% in the last 24 hours at press time. However, the decline cannot be directly attributed to the halt as other factors might have been at play.
BNB’s Binance funding rate was down substantially, reflecting decreased demand in the derivatives market. The crypto community’s confidence in BNB was low, as evident from the spike in its negative sentiment. The whale transaction count also went down, which indicated less interest from the big players in BNB.
BNB Might Struggle to Climb up the Price Ladder
A look at BNB’s daily chart revealed that the chances of a further price decline were high. The MACD displayed a bearish crossover. BNB’s Relative Strength Index (RSI) was hovering under the neutral mark of 50, which was an update in the sellers’ favor. The Chaikin Money Flow (CMF) also registered a decline, further suggesting a southbound price movement in the near term. At press time, BNB was trading at $330.78 with a market capitalization of over $51 billion.
In conclusion, although the temporary halt in BNB’s Beacon Chain did not have any significant impact on its metrics, BNB’s price registered a decline. Other factors might have played a role in this price movement. It remains to be seen how BNB will perform in the near term.
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