Binance Arbitrum One’s mainnet integration is a necessary boost, but …
Although it has only been out for a few months, there is a lot of mention of Arbitrum. As the second largest Layer 2 solution, Arbitrum has built a huge network of assets and users for the Arbitrum ONE mainnet.
However, the platform has not yet been accepted by the mainstream market. This is considered necessary to solve the current Layer 1 problems. On the other hand, the announcement by Binance on November 19. can do just that.
Binance and Arbitrum
Binance recently announced the successful integration of the Arbitr ONE mainnet, with which users can store ETH on Layer 2 Arbitrum One. For now, notifications will only be activated for deposits and withdrawals at a different time.
Not only is this news great for spurring Ethereum adoption, it is an opportunity for Arbitrum to expand further as Wrapped ETH (WETH) is currently dominating the Arbitr and Ethereum Bridge.
With a WETH dominance approaching 50% TVL, only 50% of the space remains on the bridge for other ERC-20 tokens. Compared to 2 months ago, however, the distribution of wealth has increased significantly.
Distribution TVL | The source: dune
In August, LINK clearly dominated TVL with up to 88%. However, since the beginning of September, USDC, USDC and WETH have taken this position.
Token Distribution Above Bridge | Source: dune
Aside from the WETH-controlled 50% TVL, tokens like DPX, USDC, USDT, SPELL, WBTC, and RDPX make up the bulk of the remaining 50% (45% TVL total).
Arbitr has a long way to go and there are many more ERC-20 tokens to be added to the network. Oddly enough, this month wasn’t great for a Layer 2 solution.
TVL has barely gained much overall this month and is down $ 700 million over the past week. In addition, the number of ERC 20 withdrawals and deposits in 24 hours has been reduced to just 24 and 54 respectively.
ERC 20 deposits and withdrawals via Arbitrariness | Source: dune
Additionally, gas charges are another arbitrum-related issue that remains unsolved. While transactions are much cheaper than Layer 1 Ethereum ($ 8.50), Arbitrum is charging $ 3.50 per transaction, according to information at the time of writing.
Hence, Arbitrum must consider resolving this problem as soon as possible.
fee Above Arbitrariness | The source: L2fees.info
Hence, perhaps this announcement will be the necessary impetus as Binance is proof that Arbitrum is growing in popularity and, as a result, attracting more investors.
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