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BNB Chain’s Gas Fee Cut Proposal: Fueling a $1500 Price Surge for Binance Coin?

BNB Chain’s Gas Fee Cut Proposal: Fueling a $1500 Price Surge for Binance Coin?

Published:
2025-09-24 16:12:00
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BNB Chain's proposed gas fee reduction sends shockwaves through crypto markets—could this be the catalyst that propels Binance Coin toward the elusive $1500 milestone?

The Mechanics Behind the Move

Slashing transaction costs by up to 40%, the upgrade directly targets one of blockchain's perennial pain points. Developers call it 'the most significant network optimization since mainnet launch'—traders see it as rocket fuel for BNB's valuation.

Market Reactions and Historical Precedents

Previous fee adjustments have triggered 20-30% price surges within weeks. This cut dwarfs those changes in scale—analysts project accelerated adoption across DeFi and gaming sectors that previously hesitated at BNB Chain's cost structure.

The Regulatory Wildcard

While technical upgrades spark optimism, seasoned investors watch regulatory developments with cynical detachment. 'Another day, another crypto solution begging for FSA approval,' quips one Wall Street defector. 'Cut fees today, face compliance costs tomorrow.'

BNB's trajectory now hinges on execution—flawless implementation could validate the $1500 predictions, while technical stumbles might leave bulls nursing losses. The proposal votes next week.

BNB Chain validators have proposed cutting gas fees in half while ramping up block speeds. Meanwhile, BNB price is looking primed for a rally.

The proposal WOULD reduce minimum gas prices from 0.1 Gwei to 0.05 Gwei and decrease block intervals from 750ms to 450ms.

The network upgrades come as BNB token reached a new all-time high of $1032 on September 21.

Validators Target Ultra-Low Fees to Compete with Solana and Base

BNB Chain validators have recently shared aggressive fee reduction plans to enable the network to effectively compete against high-performance chains like solana and Base.

The proposed gas fee cut from 0.1 Gwei to 0.05 Gwei would bring transaction costs to approximately $0.005 per transaction.

Further, block interval acceleration from 750ms to 450ms has been implemented, to improve trading execution speeds for market makers and high-frequency traders.

Looking back, April 2024 saw the BNB chain gas fees drop from 3 Gwei to 1 Gwei, which is a 67% reduction. Historically, fee reductions are considered a sign that the strategy has been effective.

Furthermore, May 2025 brought another 90% decrease from 1 Gwei to 0.1 Gwei. These changes resulted in median fees falling 75% from $0.04 to $0.01.

Daily transactions surged 140% to exceed 12 million. For future decisions of this nature, the validator community has established a guiding principle:

“As long as staking APY remains above 0.5%, BNB Chain should strive to have the lowest gas fees possible.”

Long-term targets envision gas fees around $0.001 per transaction. This is a 90% reduction from current levels.

The network operates at less than 30% capacity and offers room for decent transaction volume increases.

Swap-related transactions have become the dominant network activity and has surged from 20% at the start of 2025 to 67% in June.

Perpetual Futures Volume Surpasses $50 Billion Milestone

BNB Chain achieved a major trading milestone on September 23 when on-chain perpetual futures volume hit $51.3 billion for the first time.

The network contributed $21.5 billion to this total and has surpassed Hyperliquid’s volume and establishing BNB Smart Chain as a leading derivatives trading venue.

Perpetual volume by chains, Dune data

Key protocols driving this growth include Aster, MYX Finance, PancakeSwap Perps, and HoldStation DeFutures.

BNB Chain’s combination of low fees and high throughput has attracted institutional market makers that need reliable execution environments.

The proposed fee cuts to $0.005 per transaction would further solidify BNB Chain’s competitive positioning against alternative trading venues.

Can BNB Price Hit $1,500 ? Franklin Templeton Partnership Drives Adoption

The September 10 announcement of Binance strategic partnership with Franklin Templeton catalyzed major institutional interest in BNB Chain infrastructure.

Key partnership initiatives include tokenization of securities using Franklin Templeton’s compliance expertise and global distribution through Binance’s infrastructure.

In other BNB news, CEA Industries exemplifies growing corporate adoption with $26 million in Binance Coin purchases during September, acquiring 30,000 tokens.

The company’s total holdings reached 418,888 BNB valued at $368 million. CEA aims to own 1% of BNB’s circulating supply by end of 2025.

BNB 1D price chart – Tradingview

BNB price performance shows institutional confidence with the token reaching a new ATH of $1032 on September 21.

Weekly gains of 7% and monthly appreciation of 17% show the overall bullish outlook. At press time it was trading a $1018.47.

Market analysts also predict continued price appreciation toward $1,500 targets based on institutional adoption trends and network fee optimization.

However, a foolproof price surge to that level needs a sustained bullish overall market outlook.

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