Early this week, the Uniswap community voted en masse for a plan to deploy the third iteration of the decentralised exchange, V3, on the BNB Chain. Voting for the proposal, initially fronted by OxPlasma Labs, ended on Sunday with over 80% of participants or 20 million Uniswap votes, for the idea of deploying Uniswap V3 on the BNB Chain.
The over 80% in favour of the vote was the largest in Uniswap’s governance history.
After the vote, the team at 0xPlasma Labs promised to work on a user interface for Uniswap V3 on the BNB chain and publish it on their website.
The BNB Chain Has a Growing User Base, Faster Transaction Speeds and Low Fees
As for the motivation behind the proposal to deploy Uniswap V3 on the BNB Chain, the proposal by 0xPlasma Labs pointed out that the chain has an ever-expanding user base which will provide a new market for Unsiwap V3.
In addition, the BNB Chain was efficient in terms of speed and lower transaction fees, making it ideal for Uniswap’s decentralised exchange.
Furthermore, the BNB chain has direct links to Binance, which ‘has a strong track record of supporting and promoting high-quality projects, potentially providing valuable exposure for Uniswap v3.’
Binance Coin Could Push Towards $400 or $500 in Anticipation of Uniswap V3 Deployment
Uniswap V3 deploying on the BNB chain means additional utility and demand for its native cryptocurrency, Binance Coin. Given the current bullish sentiment in the crypto markets courtesy of a resurgent Bitcoin, the value of Binance Coin (BNB) could benefit from the anticipation of deploying Uniswap V3 on the BNB chain.
A glance at the one-day BNB/USDT chart below shows that Binance Coin, at its current level of around $300, remains in bullish territory above all crucial moving averages: the 50-day (red), 100-day (yellow), 200-day (green) and 200-week (black).
There is also a slight hint that a bullish golden cross between the 50-day and 200-day moving averages will occur sometime in early February.
Consequently, and if the current bullish sentiment is maintained in the crypto markets, Binance Coin could be on a trajectory towards retesting the $398 and even the $500 resistance levels in the following weeks or months. The possibility of such as scenario is increased by traders anticipating the deployment of Uniswap V3 on the BNB Chain and the increased utility it would bring to Binance Coin.
As with all analyses involving price action, readers are reminded that the above should not be considered financial advice.
~By John P. Njui~