Kraken develops new Layer 2 blockchain based on Optimism
Kraken, a top 20 centralized exchange (CEX) by trading volume, announced the development of a new Layer 2 blockchain called InkChain. The new network will be built based on the Optimism OP stack, one of Ethereum's main technologies for scaling networks.
The testnet launch is expected to take place on November 11, 2024. Meanwhile, the mainnet debut is expected in 2025.
InkChain is part of the growing number of Layer 2 solutions developed to improve the performance of the Ethereum network. The solution offers greater scalability and a better user experience. In its statement, Kraken stated that InkChain will bring “real change to the cryptocurrency industry” with a focus on improving the user experience. Furthermore, it will create a simplified environment for DeFi (decentralized finance) and encourage developers in the area.
However, Kraken has not yet released more specific details about InkChain. The launch of the network follows a pattern observed throughout 2024, with the recent announcement of other Layer 2 solutions, such as Unichain, from Uniswap, whose test network hit the market less than two weeks ago.
Kraken launches InkChain
The total value locked (TVL) on Ethereum Layer 2 networks has seen a 10% drop in the last 90 days. But the number of transactions per second (TPS) remained stable, according to data from L2Beat. This relatively weak performance comes at a time when Ethereum faces increasing competition from other networks such as Solana.
Ethereum's market share in the DeFi sector has been declining in recent months. According to data from DeFi Llama, Ethereum mainnet TVL has fallen 6% since April, totaling $67 billion. Meanwhile, Solana saw a 20% increase in its TVL, reaching $8 billion in the same period.
The market cap ratio of Solana and Ethereum (SOL/ETH) has also reached record levels, reflecting Solana's growth as a significant competitor in the blockchain sector.
Faced with the proliferation of new blockchains and Layer 2 solutions, parts of the crypto community have expressed the need for greater adoption of existing networks rather than new infrastructure. A user on social media, identified as Icebergy, commented ironically:
“I think we need more blockchains and layers”, criticizing the excess of new solutions on the market, without a corresponding increase in user activity.