BNB Chain has rolled out a significant optimization to its BNB Smart Chain (BSC) network, addressing a surge in gas fees triggered by meme coin speculation. The network upgrade aims to enhance transaction efficiency and alleviate congestion, as gas fees skyrocketed by 388% in the past week.
Why the Sudden Spike in BSC Gas Fees?
The recent spike in BSC gas fees, which reached an unprecedented $15 million last week, can be attributed to a surge in meme coin transactions. Inspired by Binance founder Changpeng “CZ” Zhao’s dog, Broccoli, meme coins have flooded the network, driving heightened activity on decentralized exchange PancakeSwap. According to Nansen data, this activity pushed BSC’s gas fees beyond Ethereum’s $7 million, although they remained below Solana’s $29 million.
How BNB Chain Tackles Congestion with Improved Validator Processing
To address this surge in demand, BNB Chain has enhanced validator processing by allowing more bids per three-second block window. Previously, BSC validators ceased assessing bids once the block cap was reached, leading to delayed or failed transactions, even when users paid premium gas fees.
With the new upgrade, validators can now prioritize high-value transactions, particularly those involving time-sensitive meme coin contracts. This improved mechanism allows more bids to be processed, enhancing block-building performance during peak network activity.
Record-Breaking Activity and Market Performance
The network upgrade coincides with BNB Chain hitting record gas fees. Over the past week, BSC gas fees surged by 114%, surpassing all networks except Solana. The increase in activity follows Binance’s temporary 60-day suspension from legal action with the SEC, which has reportedly drawn investors back to the network.
BNB Chain also processed 68.3 million transactions in the last 30 days, securing its position as the largest Ethereum Virtual Machine (EVM) chain by monthly transactions, second only to Solana. As a result, BNB’s price rose by 13%, with its market cap surpassing $104 billion, outperforming Solana’s SOL token.
Meme Coin Revival Boosts BNB Chain Activity
BNB Chain is experiencing a resurgence in meme coin trading, driven by the Four.meme platform, which facilitated the creation of over 12,000 meme tokens in a single day. This surge in meme coin popularity is contributing to the high network activity and unprecedented gas fee levels on BSC.
BNB Chain vs. Ethereum and Solana: A New Leader Emerges
The latest data shows that BNB Chain is now leading in monthly transactions among EVM chains, reflecting its growing influence in the cryptocurrency space. While Solana maintains the highest overall gas fees, BNB Chain’s rapid growth and increased transaction efficiency position it as a formidable competitor to both Ethereum and Solana.
The strategic upgrade by BNB Chain highlights its commitment to maintaining high performance and user satisfaction, even during periods of intense network activity. As meme coins continue to drive demand, BNB Chain’s enhanced capabilities could set new standards for transaction efficiency and scalability in the blockchain ecosystem.
