Binance Coin (BNB) Price Soars 10% to $642.92 Following 90% Gas Fee Cut Proposal

On May 9, Binance Coin (BNB) climbed to $642.92, rising over 10% in 24 hours. The price rally followed a proposal from Binance founder Changpeng Zhao (CZ) to cut gas fees on Binance Smart Chain (BSC) by 90%.

May 9 saw Binance Coin (BNB) climb to $642.92, marking an increase of over 10% within a 24-hour period. This price rally followed a proposal by Binance founder Changpeng Zhao (CZ) to slash gas fees on Binance Smart Chain (BSC) by 90%.

The four-hour chart displayed a breakout with volume reaching 34,190 BNB. The 50-period Exponential Moving Average (EMA) stood at $607.82, lending credence to bullish momentum.

CZ Proposes 90% Gas Fee Cut for BNB Smart Chain via BEP-336

Changpeng Zhao submitted a proposal for Binance Evolution Proposal (BEP-336) to reduce gas fees on the Binance Smart Chain by 90%. This adjustment aims to decrease transaction costs and enhance competitiveness against Solana and Ethereum.

Currently, BNB Smart Chain employs a gas model with a fixed base fee plus a priority fee. However, CZ’s plan involves substituting the fixed fee with a blob-carrying transaction format. This format closely resembles Ethereum’s Proto-Danksharding, which was introduced via Ethereum Improvement Proposal (EIP-4844) in March 2024.

The introduction of blob-carrying transactions allows blockchains to store more data at reduced costs, leading to better scalability and faster throughput. In the case of Ethereum, Proto-Danksharding resulted in a more than 90% reduction in Layer 2 fees. Now, CZ’s proposal brings this structure to the BNB Smart Chain. If approved by the community, this change could decrease average BSC transaction fees to 0.0005 BNB from the current 0.005 BNB.

BNB Momentum Builds as RSI Signals Overbought Zone

Technical indicators also showed the Relative Strength Index (RSI) on the four-hour chart surging to 78.42 on May 9, crossing the key threshold of 70. This signals overbought conditions, typically observed during strong upward price trends. The RSI moving average also reached 66.64, lending support to bullish momentum.

The rising RSI coincides with BNB’s sharp price breakout and high trading volume, highlighting intensified buying pressure and reinforcing expectations of further upside movement.

If current momentum persists, BNB could approach the $700 mark, a level last tested in early 2022. The next price move will depend on the outcome of the community vote on Binance Evolution Proposal 336 (BEP-336). Binance Chain validators will decide whether to adopt the new fee model through a hard fork. A successful vote could expand BNB’s role in decentralized applications by reducing average transaction costs by 90%.