Taking into account the sky-rocketing fees associated with Ethereum, the demand for Layer 2 solutions saw a dramatic uptick over the course of 2021. 

Binance will allow more people to use the Ethereum Layer 2 solutions like Arbitrum One without the need to use the Ethereum mainnet, saving users time and cutting down on costs. In the past, users were forced to utilize a completely different network and later bridge Arbitrum, an expensive process.

Offchain Labs developed Arbitrum One to boost the throughput on Ethereum and works by executing transactions outside the Ethereum mainnet while simultaneously storing data on it. The Arbitrum One blockchain leverages optimistic rollups which also help in reducing network congestion and gas fees while eliminating bottle-necks and increasing speed.

Binance is one of the few crypto exchanges currently supporting Layer 2 Ethereum solutions for deposits and withdrawals. Unlike centralized exchanges, which have been opened to adopt Layer 2 Ethereum solutions, decentralized exchanges like Uniswap, Aave, and 1inch, have already integrated Ethereum Layer 2. 

The demand for Ethereum Layer 2 is only going to grow in large part due to the higher gas fee on Ethereum. As demand continues to increase, more centralized exchanges like Coinbase should begin offering their own solutions. 

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