Binance, a cryptocurrency exchange, appears to have begun making direct withdrawals to Layer Two Ethereum Networks. Lark Davis, a well-known crypto analyst, was the first to notice the change, posting a screenshot to his Twitter account.
Binance had already announced the integration of the Arbitrum One network. Then, the simultaneous availability of deposits for ETH on Arbitrum One Layer 2 in November 2021.
Users can now deposit both BTC and ETH to their Binance accounts utilizing the Arbitrum One Layer 2 solution. Of course, thanks to the latest development. The demand for Layer 2 solutions has surged as Ethereum fees have skyrocketed.
As a result, Binance’s growth occurs at just the correct time! More individuals will be able to use Ethereum Layer 2 solutions like Arbitrum One without having to use the Ethereum mainnet as a result of this advancement. Previously. Therefore, users had to connect to a different network and then bridge to Arbitrum, which was time-consuming and costly, according to the trader.
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 at the same time.
The Arbitrum One blockchain makes use of optimistic rollups, which reduce 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 as 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. As a result, we expect more centralized exchanges, such as Coinbase, to jump on board and support and integrate L2s.