"BNB Chain's Gas Fees Skyrocket 400% Amid Memecoin Frenzy"
1min read BNB Chain, the blockchain network behind the Binance cryptocurrency exchange, has experienced a significant surge in gas fees over the past week, with a 400% increase in user fees. This surge comes amid growing speculation and interest in memecoins on the network, which has led to increased congestion and higher gas fees.
The spike in gas fees follows the release of a new optimization for BNB Chain's BSC network. The rumors about a potential memecoin launch on the network have contributed to the congestion and higher gas fees. According to a Nansen analyst, Aurelie Barthere, while BSC's gas fees have jumped in the last seven days, other blockchains like Base, Ethereum, and Solana have registered a decline. Barthere believes that the 60-day pause in the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Binance is a major contributor to this development.
To handle the surge in traffic and ensure the prompt inclusion of transactions, BNB Chain has announced that it will prioritize block value. This means that crucial transactions interacting with time-sensitive contracts will be given priority. However, during periods of high traffic, memecoin swaps, which are time-sensitive, may not make it into a block, even if users increase their gas fees to fast-track transactions. To address this issue, validators will now have permission to gather more bids within the three-second window, with the goal of giving higher-value transactions priority over lower ones. This could potentially improve overall blockchain performance, particularly during high network activity periods.
Meanwhile, as BNB Chain works to address the surge in gas fees, Changpeng "CZ" Zhao, the founder of Binance, has inspired the creation of several memecoins through his dog, Broccoli. This has added to the increased network activity and hype surrounding the BNB Chain. In a recent update shared with the community about the network upgrade, CZ assured users that there would be more to come and urged the community to "Build," a motto that has become synonymous with his vision for the network and serves as a caution for innovators and investors to focus on what truly matters.
