BNB Drops 2.267% Amidst Upcoming Lorentz Upgrade and Hard Fork

BNB's latest price was $583.33, down 2.267% in the last 24 hours. The official launch of Lista DAO’s latest financial innovation, the Lista Lending platform, was announced on April 13. This platform features the pioneering USD1 Vault, which is further endorsed by Trump and operates on the BNB Chain. The USD1 Vault is designed to offer a generous credit line of up to 20 million USD, empowering users to leverage BTCB as collateral to secure USD1 loans at a remarkably low interest rate starting from 0.93%. Additionally, there are plans to integrate support for wBNB and slisBNB as collateral options in the near future, broadening the accessibility of this lending solution.

The next important catalyst for BNB is the upcoming Lorentz upgrade and hard fork. The developers noted that the opBNB hard fork would happen on April 21 this year. It will be followed by the BSC hard fork on April 29. The goal of the Lorentz hard fork is to make the network faster as it seeks to become a better alternative to Ethereum and Solana. The Lorentz upgrade’s goal is to dramatically reduce the block times of the BSC Chain to about 1.5 seconds. It will then be followed by the Maxwell upgrade that will drop the block times further from 1.5 to 0.75. These upgrades will make the BSC Chain one of the fastest chains in the crypto industry. Most notably, BSC hopes to be the best alternative to Solana and Ethereum. Solana’s network has become clogged by meme coins, while Ethereum is being destroyed by layer-2 networks like Base and Arbitrum.

The Lorentz hard fork comes a month after the developers implemented the Pascal hard fork. Pascal’s goal was to help it integrate more with Ethereum, the biggest chain in the crypto industry. It improved the Ethereum Virtual Machine (EVM) compatibility, optimized gas fees abstraction, and added a feature to avoid block calculation errors. The network also has a quarterly burn that incinerates tokens worth over $1 billion a quarter. These token burns will continue in the foreseeable future as the network works to reduce the number of coins from over 144 million to 100 million.

BNB has become one of the most deflationary tokens in crypto. It achieves this by its real-time burn mechanism that incinerates hundreds of tokens worth over $366k a week. This burn is derived from the gas fees the network handles. The other potential catalyst for BNB is that its staking inflows have been positive in the past few days. This staking market cap rose by 1.3% in the last 24 hours to over $18 billion. It has brought the staking ratio to 20.8%. Recent data by StakingRewards shows that the inflows have increased gradually. BNB has a staking yield of about 3.5%, making it higher than Ethereum’s 3.14%.