The Value Of Ethereum Layer 2 TVL Has Reached An All-Time High
A steady rise in gas prices has pushed the total value locked (TVL) on Ethereum L2 networks to new highs. According to Layer 2 monitoring platform L2 beat, the total value locked across multiple L2 interfaces and networks has topped $5.64 billion.
The L2 scaling systems allow substantially faster transaction speeds and cheaper transaction costs, and they exploded in use in November when the Ethereum network had its highest average gas costs ever.
Arbitrum has roughly 45% of the L2 market locked up at $2.67 billion. On the other hand, the Loopring L2 DEX is ranked third with $580 million in TVL, but its own LRC coin makes up the majority of its value.
From $2.68 billion to present levels, Layer 2 TVL has quadrupled since early October. As per Bitinfocharts, the typical Ethereum transaction cost is presently $40. On Nov. 9, they reached their second-highest ever figure of approximately $65 and had risen 700% in four months.
According to Etherscan, a simple ERC-20 token exchange can cost roughly $45 and a more involved smart contract engagement or Uniswap swap can cost around $140. Even though a domain name costs only a few bucks per year, registering one on the Ethereum Name Service may cost a fortune in gas.
Due to high gas expenses, DeFi platforms have witnessed record inflows since October as developers and investors avoided Ethereum.
Binance Now Accepts Layer-2 Ethereum Deposits Via Arbitrum Incorporation
Binance revealed earlier this month that the inclusion of the Arbitrum One core network and the opening of layer two Ether (ETH) deposits would take place. In contrast to the Ethereum mainnet, Arbitrum is a layer-2 optimistic rollup protocol that operates off-chain on Ethereum contracts.
Arbitrum now accepts ERC-20 tokens from Binance users for free. As one of the first centralized exchanges to offer layer two, Binance has announced that it will soon allow ETH withdrawals on the Arbitrum One Network.
Constant data traffic and high fees have slowed the exponential expansion of Ethereum, probably the world’s most popular blockchain network. A multilayered Ethereum consensus mechanism, Arbitrum One, enables infinite scaling and near-instantaneous processing speeds for a fraction of the cost of traditional cryptocurrencies.
Layer-two ETH deposits are an important step forward for Binance, as trading platforms and cross-chain atomic swaps gain market share. Binance is one of the world’s leading crypto exchange platforms by activity, and the Arbitrum connection is beneficial for Ethereum uptake.
This capability will be available to traders when the Arbitrum One Network tier two is launched. Nevertheless , Binance is allegedly planning to allow users to withdraw funds directly to Arbitrum.
Per a tweet from New Zealand crypto enthusiast, Lark Davis, Binance is working on permitting direct ETH withdrawals to Arbitrum. “Huge for Ether adoption.” This layer-two capability is now included, which is a big step forward for Ethereum 2.0.
Although Ethereum 2.0 is now live, other layer-two platforms will continue to work on scaling. Rather, after sharding is fully deployed, tools like rollups and side chains will let Ethereum 2.0 scale.
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