|

Arbitrum boosts Layer 3 network development as Polygon, BNB Chain lag behind

  • Arbitrum developers Offchain Labs release Orbit to power Layer 3 chains, while Polygon and BNB Chain catch up with Layer 2.
  • Analysts say Arbitrum’s new releases pass on the benefit of higher revenue to the DAO and to users.
  • Arbitrum’s new release invites developers to customize and develop exclusive Layer 3 blockchains.

Developers of Arbitrum, a dominant Layer 2 scaling solution for Ethereum, launched on Thursday Arbitrum Orbit, a new tool to power Layer 3 chains in the ecosystem. Arbitrum’s competitors, Polygon and BNBChain, recently released zero-knowledge rollups.

Despite the competition in the Ethereum scaling solution ecosystem, Arbitrum seems to be keeping its dominance with its developmental updates as other solutions such as Polygon and BNB Chain are catching up with Layer 2 protocols.

Also read: Ripple receives nod to rollout digital asset services in Singapore, bolstering XRP price rally

Offchain Labs releases Arbitrum Orbit chain toolkit to power Layer 3 development

Offchain Labs, the developer of the Arbitrum ecosystem, released the Orbit chain toolkit on Thursday. This release is targeted at developers building Layer 3 chains within the crypto ecosystem. 

In the Ethereum ecosystem, Layer 2 protocols scale the underlying blockchain and reduce transaction costs for users. Apart from these, Layer 3 delegates complex tasks toa so-called third chain, boosting scalability and further reducing fees.

The developers of the Arbitrum ecosystem are providing a quickstart guide and tools for protocols keen on transitioning to Layer 3.

Polygon, BNB Chain opt for Layer 2 updates

Arbitrum dominates the Ethereum scaling solution ecosystem with $2.17 billion in Total Value Locked (TVL), according to data from DeFiLlama, Polygon (MATIC) , considered one of the largest Layer 2 protocols, has $956.81 million in TVL, second to Arbitrum.

Polygon recently launched ZKL2, its zero-knowledge Layer 2 rollup in order to speed up transaction processing and reduce fees through higher scalability. Meanwhile, BNB Chain introduced opBNB, a Layer-2 solution powered by Optimism.

MATIC and BNB prices climbed 15.22% and 7.86%, respectively over the past week, based on data from Binance price index. ARB price rallied 25% in the same timeframe, beating MATIC and BNB both in terms of yield for holders and higher technical development.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Solana Price Forecast: SOL consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana (SOL) price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH and XRP face pressure near key technical barriers

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) hover around key levels on Monday after correcting slightly in the previous week. The top three cryptocurrencies by market capitalization could face increased downside risk as bearish momentum builds across key indicators.

Top Crypto Losers: DASH, SPX, PENGU – Privacy and meme coins lose ground

Altcoins, including Dash (DASH), SPX6900 (SPX), and Pudgy Penguins (PENGU), are leading losses as the broader cryptocurrency market remains cautious ahead of the macroeconomic data releases, such as the US Nonfarm payroll report, CPI data, and the Bank of Japan’s rate-hike decision.

Top 3 Price Prediction: BTC and ETH eyes breakout, XRP steadies at support

Bitcoin (BTC) and Ethereum (ETH) are nearing the key resistance levels at the time of writing on Friday, and a successful breakout could open the door for a fresh rally. Meanwhile, Ripple (XRP) is stabilizing around a crucial support zone, hinting at a potential rebound if buyers maintain control.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.