Binance integrates Optimism
The first cryptocurrency exchange platform continues to expand its offer. Already compatible with the main networks such as Ethereum (ETH), Solana (SOL) or Avalanche (AVAX), Binance is also open to layer 2 solutions and announcement support Optimism.
Currently, Binance does not support than Ether deposits from this network. Withdrawals will be made available once the exchange has accumulated enough liquidity, as the official statement explains:
“Binance will open ETH withdrawals on Optimism Network once there are enough assets in our wallet. »
In a nutshell, Optimism is a network running alongside Ethereum and aimed at relieving the network. The latter being often singled out for its congestion and high costs, these second-layer solutions have been a logical success.
👉 To understand everything about how the transaction gas system works
Layer 2s are on the rise
With the explosion of decentralized finance (DeFi) and non-fungible tokens (NFTs), Ethereum found itself Victim of his own success. With each new collection of NFTs or simply in times of high volatility, transaction fees could reach exorbitant levels.
Figure 1: Evolution of the price of gas on Ethereum since 2016
The second layer solutions of Ethereum, such as Polygon (MATIC) or Optimism are precisely developed to address these issues. Indeed, they deport and aggregate part of the transaction data on their network and thus lighten the main blockchain.
Currently, according to data from L2Fees.info, Optimism’s transaction fees are almost 20 times lower than on Ethereum. While a token swap currently costs $3.3 on the mainnet, it would only cost only 17 cents on Optimism.
Over the past few weeks, Optimism is growing in popularity. The Total Value Locked (TVL), or amount of cash locked to protocols, has risen from around 160,000 ETH last March to almost 240,000 ETH today.
Figure 2: Total Value Locked (TVL) on Optimism
According to data from DefiLlama, Optimism finds itself at the 18th position of blockchains with the most value locked in its DeFi protocols.
👉 On the same topic – For Vitalik Buterin, layer 2 transaction fees must be less than $0.05
Sources: Binance, Figure 1 – Etherscan, Figure 2 – L2beat, DefiLlama
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