The Total Value Blocked (TVL) on Ethereum’s Layer 2 networks has reached a new all-time high. Because Ethereum main layer transaction fees keep increasing steadily, which has driven further adoption of the network.
Also, the second layer of Ethereum provides much higher transaction throughput and lower transaction rates. This layer 2 of the network has had a strong growth during the month of November. In the same way, this month has seen the highest transaction rates in the history of the Ethereum mainnet.
Arbitrum, one of the most widely used rollups, contains the largest share of Ethereum’s layer 2 market with $ 2.67 billion dollars, about 43.55% of the total dollars blocked.
In practice, a “rollup” works by grouping different transactions on the Ethereum network in a single operation. This means that it is possible, within the same block, to group the largest number of transactions. Making a considerable decrease in transaction commission costs is achieved. In this way, the network transaction rates per second (TPS) are increased.
Likewise, the average transaction fees on the Ethereum network are currently around $ 40-50, according to Bitinfocharts. On November 9, rates reached the second highest level in history, increasing to $ 63. Average rates have increased 2,180% since last year.
The second layer of the Ethereum network
The second layer of the Ethereum network aims to solve the problem of poor scalability of the main network. This second layer of the network makes it possible to more efficiently optimize the transactions carried out on the main network. And as a result it alleviates congestion on the Ethereum Blockchain.
Also, second layer solutions began to be implemented due to the large increase in transaction fees in the base layer of the Ethereum network. These solutions work by delegating the processing of the main Blockchain to its own secondary Blockchain, processing the transactions there, before establishing the final balances on the main base layer network.
Second layer solutions like Arbitrum. They provide an inexpensive scalability alternative so that decentralized exchanges and applications can use the Ethereum network at low costs. Currently, the prices of transactions on the Ethereum network continue to rise. Therefore, the second layer ecosystem for this Blockchain is rapidly gaining popularity.
Binance integrates with Arbitrum One and opens deposits on the Layer 2 ETH network
The popular cryptocurrency exchange Binance announced on Friday, November 19, that it has integrated the Ethereum layer 2 network developed by Offchain Labs into its platform to «Arbitrum One».
The integration announced by Binance on its main page, it works at the moment only for Ethereum (ETH) deposits. Which means that Binance users can now directly deposit their funds to the exchange through Arbitrum One.
Binance will also allow withdrawals on the Arbitrum platform at a later date, the exchange said, without specifying a specific date. Once that option is enabled, Binance users will be able to withdraw their funds from Arbitrum faster and at a much cheaper cost.