Binance Announces Support for Layer-2 Ethereum Scaling Solution Optimism


Binance Announces Support for Layer-2 Ethereum Scaling Solution Optimism

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Binance, the world's largest cryptocurrency exchange by trading volume, has announced that it would adopt Optimism, an Ethereum scaling solution.

For the time being, the CZ-led exchange will only accept ETH deposits over the scaling network, according to the release. Withdrawals, on the other hand, would be made when the crypto business had sufficient liquidity.

According to the announcement:

Binance has finished the Optimism Network integration and has begun accepting ETH deposits on the Optimism Layer 2 platform... Once we have enough assets in our wallet, Binance will enable ETH withdrawals on the Optimism Network.

Binance isn't the first cryptocurrency exchange to implement an Ethereum layer 2 scaling solution. KuCoin and FTX, two of the most popular cryptocurrency trading sites, have already done so. Optimism was introduced to KuCoin in April, and FTX has also implemented Arbitrum into its platform.

Ethereum Scales With Layer 2 Scaling Solutions Like Optimism

On the Ethereum blockchain, optimism, along with other layer 2 scaling methods, has grown highly popular. Layer 2 networks are primarily intended to assist the network in overcoming some of the challenges it confronts in terms of transaction speed and cost.

With Ethereum serving as the center for NFT and Defi projects, scaling solutions such as Optimism, Arbitrum, and Polygon play a key part in ETH's superiority over its competitors.

However, according to Dune Analytics, trading directly on Ethereum is 98 times more expensive than trading on L2s like Optimism. This explains why L2s are becoming increasingly popular among crypto enthusiasts.

According to statistics from DeFiLlama, the entire amount of assets locked in the L2 is estimated to be worth over $300 million. Uniswap, Synthetix, Lyra, and other Defi projects have developed their services on top as well.

Optimism has also just revealed intentions to launch a governance token, which would offer its users additional authority and a unique governance approach. 

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