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.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Chainlink social dominance hits six-month peak as LINK extends gains

Chainlink social dominance hits six-month peak as LINK extends gains

Chainlink social dominance surged to a six-month peak on Friday as LINK holders increased their activity. LINK traders started taking profits, on-chain data trackers show. LINK price added 6% on Friday, extending its gains from mid-week.

More Chainlink News

Binance helps Taiwan crack a virtual asset money laundering case, BNB sustains above $570

Binance helps Taiwan crack a virtual asset money laundering case, BNB sustains above $570

Binance’s Financial Crimes Compliance (FCC) department joined forces with Taiwan’s Ministry of Justice and helped resolve a case of money laundering worth NT$200 million, or $6.2 million. 

More Binance News

Bitcoin Weekly Forecast: Is BTC out of the woods? Premium

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

More Bitcoin News

XRP trades steady at $0.50 as Ripple shares plan to expand services in Africa

XRP trades steady at $0.50 as Ripple shares plan to expand services in Africa

Ripple hovers close to $0.51 on Friday, above the psychologically important $0.50 level, as traders await the court ruling of the lawsuit against the US Securities and Exchange Commission and amid new commitments from the firm to expand its services in Africa. 

More Ripple News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in. 

Read full analysis

BTC

ETH

XRP