Arbitrum has coated plenty 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.
Nevertheless, it was but to see mainstream adoption, which is critical to resolve the Layer 1 points. Binance’s announcement on 19 November may need simply performed that.
Binance and Arbitrum
Binance just lately 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 will likely be enabled on a later date.
Now, whereas this information is nice for Ethereum adoption, it’s a a lot greater alternative for Arbitrum to additional broaden as at present, the Arbitrum to Ethereum bridge is being dominated by Wrapped ETH (WETH).
With nearly 50% domination in TVL and on the token bridge, it has left solely 50% of the area for different ERC-20 tokens. However, in comparison with two months in the past, the distribution of belongings has risen considerably.
Arbitrum TVL distribution | Supply: Dune – AMBCrypto
Again in August, there was a sizeable dominance of LINK which contributed to 88% of the full worth locked (TVL). Nevertheless, for the reason that starting of September, USDC, USDC and WETH have taken over that.
Arbitrum bridge token distribution | Supply: Dune – AMBCrypto
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 method 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 identical 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.
Arbitrum deposits and withdrawals | Supply: Dune – AMBCrypto
Additional, one other drawback related to Arbitrum nonetheless, is the fuel charges problem. Though transactions are less expensive in comparison with Ethereum Layer 1 at $8.5, Arbitrum nonetheless prices $3.5 per transaction, as per knowledge at press time.
So, Arbitrum may must look into fixing this drawback as quickly as attainable.
Arbitrum charges price | Supply: L2fees.information
Thus, possibly this announcement might be the push wanted since Binance will turn out to be proof of Arbitrum’s growing mainstream adoption and in return, carry extra buyers to it.