Mainnet integration of Arbitrum One could be just the push Binance needs right now
Arbitrum has lined a variety of floor within the few months of its existence. Because the second largest Layer 2 resolution, Arbitrum has managed to amass an enormous community of belongings and customers onto its Arbitrum ONE mainnet.
Nonetheless, it was but to see mainstream adoption, which is important to resolve the Layer 1 points. Binance’s announcement on 19 November may need simply accomplished that.
Binance and Arbitrum
Binance not too long ago introduced on twitter that it has efficiently accomplished the Arbitrum ONE mainnet integration. This enabled customers to deposit ETH on Arbitrum One Layer 2. For now, this announcement solely pertains to deposit, withdrawals can be enabled on a later date.
Now, whereas this information is nice for Ethereum adoption, it’s a a lot larger alternative for Arbitrum to additional develop as at present, the Arbitrum to Ethereum bridge is being dominated by Wrapped ETH (WETH).
With virtually 50% domination in TVL and on the token bridge, it has left solely 50% of the house for different ERC-20 tokens. However, in comparison with two months in the past, the distribution of belongings has risen considerably.
Again in August, there was a sizeable dominance of LINK which contributed to 88% of the overall worth locked (TVL). Nonetheless, because the starting of September, USDC, USDC and WETH have taken over that.
With 50% TVL beneath WETH’s management, the remaining 50% is beneath the dominance of DPX, USDC, USDT, SPELL, WBTC, and RDPX as they cumulatively maintain 45% of the TVL and token bridge dominance at present.
Arbitrum nonetheless has a protracted solution to go and plenty of extra ERC-20 tokens so as to add to the community. Curiously, this month has already not been nice for the Layer 2 resolution.
Its general TVL progress has additionally barely risen over the month and on the similar time fallen by $700 million within the final week. And so as to add to that ERC 20 withdrawals and deposits have come down to simply 24 and 52 respectively.
Additional, one other downside related to Arbitrum nonetheless, is the fuel charges challenge. Regardless that transactions are less expensive in comparison with Ethereum Layer 1 at $8.5, Arbitrum nonetheless prices $3.5 per transaction, as per information at press time.
So, Arbitrum would possibly have to look into fixing this downside as quickly as doable.
Thus, perhaps this announcement may very well be the push wanted since Binance will turn into proof of Arbitrum’s rising mainstream adoption and in return, deliver extra traders to it.