It’s the season for Ethereum Layer-2 protocols, with many of them seeing massive adoption and capital inflows in recent times. With their increased assimilation into the mainstream, cryptocurrency exchanges have had no choice but to go multichain in a bid to attract and retain users.
Popular cryptocurrency exchange Crypto.com on November 19 announcement that its integration with the L-2 network, Polygon was now complete. Thus, giving users the ability to make Ethereum deposits and withdrawals through the network. The exchange had previously added support for other Ethereum L2s such as Cronos, Arbitrum, BEP20, and the ERC20 network.
Many centralized exchanges are now moving towards multichain ecosystems as congestion issues continue to plague the Ethereum network. A burst in activity caused by the heightened popularity of DeFi and NFTs over the past year has led to Ethereum facing high traffic volumes that result in increased transaction periods and costs.
Additionally, L2 protocols aim to combat this by doing off-chain transactions that are only recorded in Ethereum’s ledger. Therefore, greatly increasing the scalability of the network while providing users with lower gas tariffs. The fierce competition from decentralized exchanges as well as user dissatisfaction have led to centralized exchanges integrating these roll-ups on their platforms. On November 19, Binance announced the integration of Arbitrum on the ETH deposit exchange, significantly reducing the fees incurred by its users.
In any case, Polygon has proven to be exceptionally successful in this feat, with the protocol supporting over 3,000 dApps and boasting $4.73 billion in total value locked. Overall, Ethereum L2s have seen an exponential rise in popularity, as their TVL reached a new all-time high of $5.6 billion, at the time of writing. Noting a 9% in just the past month.
Crypto.com itself recently made headlines, as the exchange bought the naming rights to Staples Center in Los Angeles earlier this week. The $ 700 million contract sparked a rally for the exchange coin, which rose 56.5% over the past week. Overall, the digital asset has gained 194.2% over the past 30 days, with increased brand awareness brought about by the deal expected to further increase the popularity of the exchange and its coin.
