Consensys and a16z have different views on UNI’s commitment to BNB.
BNB can be affected in case of deployment by UNI.
A vote is still being held to determine the best way to integrate Uniswap v3 into the BNB network. However, the voting process was anything but straightforward, with some venture capitalists (VCs) taking differing positions on the stakes.
But what effect would this implementation have on the BNB chain and the token, should it ever happen?
Read Binance Coin [BNB] Price Forecast 2023-24
Consensys and a16z compete against implementation
On February 2, 0xPlasma Labs presented a board proposal on behalf of the Uniswap Community. It was to use the most recent Uniswap version on the BNB Chain.
After receiving 20 million yes votes (80.28%) and 4.9 million no votes (19.72%), the request was officially submitted.
On February 8, there were 7.03 million votes in favor of the proposal. ConsenSys, the maker of the popular MetaMask digital wallet, led this.
ConsenSys has a stake in the underlying UNI tokens, which are now valued at approximately $47.5 million, and these votes are denominated in UNI. a16z, which reportedly holds 55 million UNI tokens, cast 15 million UNI votes against the proposal.
The reliance on the Wormhole Bridge implementation was cited as the reason for the rejection, advocating the viability of LayerZero as an interoperability protocol. At the time of writing, 77.56% of respondents were in favor of the idea, while 22.07% were against.
How the BNB chain benefits from UNI’s commitment
Uniswap’s goal is to increase protocol volume and traffic by joining different chains. On the other hand, the BNB chain will also benefit from the final implementation of the protocol.
The BNB chain’s record transaction volume exceeded $16,000,000 in November 2021. However, there has been a dramatic decline; the most recent count was just over 3 million at the time of writing. The figure may rise after the rollout of UNI.
Source: Bsc Scan
In addition, Total Value Locked (TVL) is another metric of BNB that should improve with UNI’s rollout. The TVL was $5 billion at the time of writing, a significant drop from its peak.
UNI has the potential to make significant contributions to BNB due to its status as one of the largest decentralized finance protocols.
Daily time frame BNB
Given the current state of the market, Binance’s [BNB] price activity was not as exciting as one might have expected.
It was selling for around $319 at the time of writing, with the value down more than 2% as well.
However, the Relative Strength Index showed that it was still moving in a bullish direction. The RSI line was visible at 56 and the bullish trend was declining at this point.
Source: Trade View
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Being the native coin of the BNB ecosystem, a successful UNI implementation can have a beneficial effect on BNB’s price movement.
This post Exploring how the implementation of UNI v3 may affect Binance Coin [BNB]
was published first on https://ambcrypto.com/exploring-how-uni-v3-deployment-could-impact-binance-coin-bnb/
