Crypto Exchange Binance Enables Direct Withdrawals to Ethereum Layer 2
In one of the latest developments, crypto exchange Binance seems to have started direct withdrawals to Layer Two Ethereum Networks. Popular crypto analysts Lark Davis was the first to spot this development by sharing a screenshot on his Twitter profile.
Oh boy…… Binance just enabled direct withdrawals to layer two #ethereum!!!! HUGE NEWS!!!! pic.twitter.com/4B2t2nV9OB— Lark Davis (@TheCryptoLark) January 14, 2022
Back in November 2021, Binance had already made the announcement of integrating the Arbitrum One network and simultaneously opening up deposits for ETH on Arbitrum One Layer 2.
The latest development means that users can now deposit as well as deposit ETH to their Binance accounts using the Arbitrum One Layer 2 solution. Amid the skyrocketing Ethereum fees, the demand for Layer 2 solutions has increased.
Thus, Binance’s development comes just at the right time! This development will allow more people to use the Ethereum Layer 2 solutions like Arbitrum One without using the Ethereum mainnet. Previously, users had to go to a different network and later bridge Arbitrum, which was relatively expensive, the trader said.
About the Arbitrum One Network
Arbitrum One Is a beta mainnet of a rollup solution created by Off-chain Labs. These rollups play an important part to boost the throughput on Ethereum. They can work by executing transactions outside the Ethereum mainnet while simultaneously storing data on it.
The Arbitrum One blockchain leverage optimistic rollups which also help in reducing network congestion and gas fee while increasing its speed.
Binance is only one among the few crypto exchanges supporting Layer 2 Ethereum solutions for deposits and withdrawals. While centralized exchanges are late to the party, decentralized exchanges like Uniswap, Aave, and 1inch, have already integrated Ethereum Layer 2s at their end.
As said, the demand for Ethereum Layer 2s is growing owing to the higher gas fee on Ethereum. As a result, we expect more other centralized exchanges like Coinbase to join the bandwagon and offer support and integration of L2s.Source