Crypto Exchange Binance Enables Direct Withdrawals to Ethereum Layer 2

Published by
Crypto Exchange Binance Enables Direct Withdrawals to Ethereum Layer 2

In one of the latest developments, crypto exchange Binance seems to have started direct withdrawals to Layer Two Ethereum Networks. Popular crypto analysts Lark Davis was the first to spot this development by sharing a screenshot on his Twitter profile.

Back in November 2021, Binance had already made the announcement of integrating the Arbitrum One network and simultaneously opening up deposits for ETH on Arbitrum One Layer 2.

The latest development means that users can now deposit as well as deposit ETH to their Binance accounts using the Arbitrum One Layer 2 solution. Amid the skyrocketing Ethereum fees, the demand for Layer 2 solutions has increased.

Thus, Binance’s development comes just at the right time! This development will allow more people to use the Ethereum Layer 2 solutions like Arbitrum One without using the Ethereum mainnet. Previously, users had to go to a different network and later bridge Arbitrum, which was relatively expensive, the trader said.

About the Arbitrum One Network

Arbitrum One Is a beta mainnet of a rollup solution created by Off-chain Labs. These rollups play an important part to boost the throughput on Ethereum. They can work by executing transactions outside the Ethereum mainnet while simultaneously storing data on it.

The Arbitrum One blockchain leverage optimistic rollups which also help in reducing network congestion and gas fee while increasing its speed.

Binance is only one among the few crypto exchanges supporting Layer 2 Ethereum solutions for deposits and withdrawals. While centralized exchanges are late to the party, decentralized exchanges like Uniswap, Aave, and 1inch, have already integrated Ethereum Layer 2s at their end.

As said, the demand for Ethereum Layer 2s is growing owing to the higher gas fee on Ethereum. As a result, we expect more other centralized exchanges like Coinbase to join the bandwagon and offer support and integration of L2s.

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Expert Warns More Crypto Bloodbath Ahead of CPI Data Tomorrow

The U.S. Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) data…

October 23, 2025
  • Bitcoin News
  • News

US President Promises Deal With China on Everything As ‘Trump Insider’ Begins To Close Bitcoin Shorts- Is A BTC Recovery Ahead?

The “Trump insider whale” has begun closing its Bitcoin short positions just as the U.S.…

October 23, 2025
  • News

Just-In: Changpeng “CZ” Zhao Counters Peter Schiff, Says “Tokenizing Gold Is Not On-Chain Gold”

Binance founder Changpeng "CZ" Zhao debunked economist Peter Schiff's views on tokenizing gold. CZ claimed…

October 23, 2025
  • News

$240 Million Hacked Crypto Exchange WazirX Reopens Deposits But Faces Community Backlash

Indian crypto exchange WazirX has taken key steps toward resuming full operations, with INR and…

October 23, 2025
  • News

Expert Flags Pi Network Team as Source of Selling Pressure After Reported 1.2M PI Dump

Pi community expert Mr Spock has claimed that the Pi Network team is behind the…

October 23, 2025
  • News

Ripple’s Chris Larsen Expands XRP Realized Profit to $764M Amid Evernorth Deal

Ripple executive chairman Chris Larsen has amassed millions in realized profit from XRP withdrawals since…

October 23, 2025