Binance, a cryptocurrency exchange, now allows direct Ethereum withdrawals

0
5150

Binance, a cryptocurrency exchange, appears to have begun making direct withdrawals to Layer Two Ethereum Networks. Lark Davis, a well-known cryptocurrency analyst, was the first to notice the change, posting a screenshot to his Twitter account.

Binance has previously announced the integration of the Arbitrum One network and the simultaneous availability of deposits for ETH on Arbitrum One Layer 2 in November 2021.

Thanks to the newest update, users may now deposit both BTC and ETH to their Binance accounts utilizing the Arbitrum One Layer 2 solution. The need for Layer 2 solutions has surged as Ethereum costs have skyrocketed.

As a result, Binance’s growth occurs at just the right moment! In addition, more individuals will be able to utilize Ethereum Layer 2 solutions like Arbitrum One without using the Ethereum mainnet due to this advancement. Previously, customers had to connect to a separate network and then bridge to Arbitrum, which was time-consuming and costly, according to the trader.

The Arbitrum One Network (Arbitrum One)

Arbitrum One is a beta mainnet for Off-chain Labs’ rollup solution. These rollups are critical for increasing Ethereum’s throughput. They can function by conducting transactions outside of the Ethereum mainnet while storing data on it simultaneously.

The Arbitrum One blockchain makes use of the implementation, which reduces network congestion and gas costs while enhancing performance.

Binance is one of the few cryptocurrency exchanges that accept Layer 2 Ethereum deposits and withdrawals. While traditional exchanges have been slow to adopt Ethereum Layer 2s, decentralized exchanges like Uniswap, Aave, and 1inch have already done so.

As previously stated, the increased gas charge on Ethereum is driving up demand for Ethereum Layer 2s. Consequently, we anticipate more centralized exchanges, such as Coinbase, to get on board and support and integrate L2s.

LEAVE A REPLY

Please enter your comment!
Please enter your name here