Ethereum (ETH) Plans to Add Optimism in March

Ethereum (ETH) Plans to Add Optimism in March

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Ethereum could push the market up with a tech solution called Optimism.

In recent months, the leading altcoin has shown weak dynamics and could only follow the dynamics of bitcoin. The reason is that due to the popularity of Ethereum as a platform for DeFi projects, fees started to grow rapidly. According to Ycharts, the commission grew by 10632% year-on-year. This affects the market negatively and puts downward pressure on the ETH price. The Ethereum platform is starting to lose partners and projects.

New platforms are emerging to launch DeFi. They are gaining popularity fast, and their tokens are growing by tens of percent. An example is the native token of the Binance exchange, which is already in 3rd or 4th place in terms of capitalization. The unexpected growth of BNB was due to the fact that DeFi projects are also launched on the Binance Smart Chain now, and the cost of transactions on the network is significantly lower than on Ethereum.

The situation will change when Ethereum is fully updated. But according to the roadmap, that won’t happen anytime soon. According to trader Lark Davis, in this situation, projects which solve the problem of scaling are of great importance for the market and for the capitalization of ETH. This can be done with a layer 2 solution. Such solutions create a competitive advantage and help to retain users.

According to Lark Davis, DeFi projects should follow this path, including the most successful ones. The expert is convinced that in the near future even the leader of DeFi, the Uniswap (UNI) decentralized exchange, will launch its Level 2 solution. The exchange just recently announced that it is about to upgrade. L. Davis is confident that this will have a greater impact on the market, he notes:

– This will be massive. This will be a long way towards addressing the current problems on Ethereum. One application would lift a lot of weight off the shoulders of the blockchain.

The popular Chainlink (LINK) oracle network has implemented its update called Off-Chain Reporting. It is highly likely that due to this solution, the cost of the fee is reduced by 10 times.

The Ethereum team also announced that it is going to implement a Layer 2 solution into the network as early as March. The solution is called Optimism, it will lead to lower fees for all projects that are launched on Ethereum and thereby the migration of DeFi projects to other blockchains will be stopped.