Why Did Robinhood Partner With This Layer-2 Ethereum Blockchain?


Robinhood, a well-known trading platform for stocks and cryptocurrencies, announced a new feature integration with a growing layer-2 blockchain solution at ETHDenver.

Users of Robinhood Wallet can now access swaps on Arbitrum, a secondary blockchain built on top of Ethereum.

Robinhood Users Will Be Able To Utilize Layer-2 Arbitrum

According to a recent report, Robinhood Wallet users can now engage in transactions with layer-2 blockchain, Arbitrum.

On January 13, BeInCrypto reported that Arbitrum is one of the most economical networks to transact, boasting an average fee of $0.26.

Later this year, both Robinhood and Arbitrum will collaborate to enable cross-chain swaps.

The ARB token of Arbitrum saw a significant increase in value, rising by over 11% immediately following the announcement. At the time of publication, ARB’s price is $1.97.

Arbitrum TVL Soars

Arbitrum functions as a secondary layer-2 blockchain, known as a rollup, processing transactions more efficiently compared to the primary Ethereum blockchain.

Ethereum’s transaction speed is approximately 15 transactions per second (TPS), while Bitcoin’s TPS is approximately 7.

According to DefiLlama, it has a total value locked (TVL) of approximately $3.27 billion.

On January 1, its TVL stood at $2.45 billion, marking an increase of around $820 million over two months.

Meanwhile, Robinhood recently reported that its users maintain a higher interest in spot crypto trading over crypto ETFs despite the launch of the spot Bitcoin ETF on January 10.

BeInCrypto recently reported that Robinhood’s Chief Financial Officer, Jason Warnick, highlighted the trend.

“About 5% of our overall trading in crypto is through the ETF, with 95% still being on spot trading through the crypto business, and that’s stabilized,” he stated.

In recent times, Robinhood has enthusiastically integrated crypto services into its platform.

In December 2023, the company introduced crypto trading services in the European Union, providing European citizens access to 26 crypto tokens for buying and selling.

Source : BeInCrypto by Ciaran Lyons / Mar 1, 2024

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