FTX Has Integrated Arbitrum. As for Coinbase? Pet Coins

0


Key Takeaways

FTX has added support for the Ethereum Layer 2 solution Arbitrum.
The exchange will let users make direct deposits to Ethereum’s Layer 2 without having to bridge assets from mainnet.
While Binance and FTX have shown their interest in supporting Layer 2, crypto enthusiasts have slammed Coinbase for showing more interest in pet coins.

Share this article

FTX has announced support for Arbitrum withdrawals and deposits. Meanwhile, Coinbase has faced criticism for focusing on small cap coin listings instead of Layer 2 integration. 

FTX Launches Arbitrum Support

Another exchange has added support for Arbitrum.

FTX, the third-largest crypto exchange by volume, announced onboarding support for Arbitrum Tuesday, following on the heels of Binance to adopt Layer 2 Ethereum.

FTX users will now have the option to withdraw ETH purchased on the exchange directly to their Arbitrum mainnet wallets. Previously, users needed to send funds to Ethereum mainnet before bridging them over to Arbitrum, a process that forces users to pay Ethereum’s high gas fees. Likewise, FTX users wishing to send ETH back to the exchange from Arbitrum can now deposit funds directly into their FTX exchange wallets. 

Arbitrum is an Ethereum Layer 2 network that leverages Optimistic Rollups. The network benefits from the security of Ethereum mainnet while reducing gas costs by bundling transactions and posting them to the base chain calldata. For complex transactions like swapping ERC-20 tokens, Arbitrum can currently reduce gas fees by a factor of up to 10. 

According to data from L2Beat, Arbitrum currently holds around $3.4 billion in total value locked, and many of Ethereum mainnet’s most popular DeFi protocols have built on it to make the jump to Layer 2. While fees to use Arbitrum come in at a fraction of those for processing transactions on Ethereum, the high gas cost associated with bridging funds onto the network has acted as a barrier to adoption. However, as centralized exchanges like FTX and Binance build easier, lower-cost onboarding for Arbitrum, it’s likely that more users will be incentivized to use the network. 

While the likes of Binance and FTX have moved fast to add Ethereum Layer 2 support, not all exchanges are following their example. Coinbase, the biggest U.S. exchange, has lagged behind its competitors in adopting Layer 2 in recent months. Prominent crypto community members have widely criticized Coinbase for listing illiquid, small-cap tokens instead of working on native withdrawals for assets such as Fantom and Arbitrum onboarding. 

In response to Coinbase’s latest listing of the pet digital identity token Pawtocol, The Daily Gwei founder Anthony Sassano tweeted out his disappointment in the exchange, stating, “I like Coinbase but their priorities are out of whack on this.” Sassano was joined in the comments by followers who expressed similar views, stating that Coinbase had first announced its intention to launch support for Arbitrum over five months prior but hasn’t updated customers since then. Coinbase has also been slow to unveil its NFT marketplace; Coinbase NFT was due to go live with support for Ethereum NFTs before the end of 2021 but is still yet to launch. 

As Ethereum scaling solutions like Arbitrum gain momentum, exchanges that don’t support onboarding for their customers are at risk of being left behind. On the back of FTX’s Arbitrum announcement, many are already calling for other Layer 2 solutions such as Optimism to receive support next, highlighting public demand for Ethereum Layer 2 onboarding. 

Disclosure: At the time of writing this feature, the author owned FTT, ETH, and several other cryptocurrencies. 

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

FTX Strengthens Presence in Japan With Liquid Acquisition

FTX has announced the purchase of Japanese crypto exchange operator Liquid for an undisclosed sum. FTX Acquires Liquid FTX is acquiring Japanese crypto exchange operator Liquid.com, and its subsidiaries—Quoine Corporation and…

FTX Raises $400M at $32B Valuation

FTX has achieved a valuation of $32 billion alongside its latest capital raise of $400 million, per an announcement Monday. FTX Valuation Swells to $32 Billion Cryptocurrency exchange FTX has…

FTX the Fastest-Growing Crypto Exchange in 2021: Report

FTX has released its end-of-year report for 2021, revealing it to be the fastest-growing crypto exchange over the past year.  FTX Growing Fast 2021 was a good year for FTX….

Is Time on our Side? The Case for Bitcoin’s Lengthening Cycles

One of the many unique features of BTC is its halving process, which is often accompanied by a bullish movement and preceded by bearish consolidation. Bitcoin’s halving events have been…



Source link

You might also like
Leave A Reply

Your email address will not be published.