Ethereum surpasses $3,700 after Arbitrum activation
The price of Ethereum (ETH) surpassed the $3,700 mark on Wednesday (1st), after the layer2 solution called Arbitrum went into operation.
The price of ETH rose to $3,790, registering an increase of more than 10% in the last 24 hours.
This is a new price record for Ethereum this fall. After all, the cryptocurrency has not reached this value since the beginning of May, when it broke its all-time record, surpassing $4,000.
Little information was disclosed before Arbitrum was activated. However, experts have pointed out that the start of activities was the main driver of the recent price hike.
Arbitrum is a layer 2 solution geared towards Ethereum. Its goal is to solve ETH blockchain problems through a layer 2 that runs “in parallel” as ETH.
In the case of Arbitrum, the solution “wraps” several transactions (which can be transfers or smart contract signatures) in a second layer of Ethereum. So there is no need to pay high fees.
With this solution, you only need to pay commissions to bring money into the rollup. Or, when the user wants to withdraw it, which implies configuring transactions on the main blockchain.
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Arbitrum as well as other scaling solutions alleviate congestion in Ethereum and add value to the blockchain.
Among the benefits is the program that will reward anyone who finds bugs or errors in smart contracts. Depending on the type of error found, amounts paid can range from $1,000 to $1,000,000.
In addition, Arbitrum received endorsement from several companies after conducting a $120 million funding round.
“We will use the newly raised capital to grow our team and continue to invest heavily in research and development,” said Offchain Labs co-founder Steven Goldfeder.
The funding round was led by Lightspeed Venture Partners, Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research and Mark Cuban.