Binance launches BUSD stablecoin on Layer 2 network
Optimism, the second largest Layer 2 network, is soaring to new heights, with both the network’s Total Value Locked (TVL) and its native OP token rising to record highs.
The Optimism Foundation proposed a major update to the protocol on February 1.
Dubbed “Bedrock,” the upgrade proposes a complete rewrite of the core components of the Optimism architecture and aims to “offer a new level of modularity, simplicity, and Ethereum equivalency for Layer 2 solutions.”
The new modular architecture will split the OP stack into three components – consensus, execution and billing.
If approved by Optimism governance, the upgrade is expected to take less than four hours to implement, and users of the network can expect deposits and withdrawals to be disrupted during the process.
Binance launches BUSD on optimism
On Feb. 2, Binance, the leading centralized exchange, launched its stablecoin BUSD on optimism. The launch marked BUSD’s sixth network deployment, following Ethereum, BNB Chain, Avalanche, Polygon and Tron.
BUSD is the third-largest stablecoin by market cap at $16 billion, which is 11.6% of the sector’s total. Users can now deposit and withdraw BUSD tokens on Optimism.
Optimism OP token surged to a new all-time high of $3.19 on Feb. 3 following the announcements and is up 225% year-to-date.
OP Price, Source: The Defiant Terminal
Scaling Ethereum
Optimism is a Layer 2 rollup network designed to support Ethereum scaling.
Rollups work by bundling transactions at Layer 2 and submitting them in batches for final validation on the Ethereum mainnet, reducing the fees incurred for each individual transaction.
Optimism’s TVL is retesting its all-time high of about $1.9 billion after climbing 66% since January.
The network’s leading DeFi dApps posted impressive gains in January.
Optimism’s top five dApps — Velodrome, Synthetix, Curve, Aave, and Uniswap V3 — are up 94%, 49%, 89%, 5%, and 69%, respectively, over 30 days, according to DeFiLlama.
According to L2-Beat, optimism now accounts for 33% of Layer 2 TVL.
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