Ethereum Scaler Arbitrum Is Launching Friday With Developer Support From Alchemy
A new scaling project has entered the sidechain chat.
Offchain Labs’ Arbitrum rollup technology is set to launch on Friday, May 28 for developers, the firm told CoinDesk. The layer 2 solution offers drastically higher transaction throughput than Ethereum, and gas fees that are up to 270 times lower. It’s been live on testnet since 2020.
Arbitrum goes live in full as scaling platforms again surge in popularity. Projects like Polygon, Optimism and Matter Labs’ zkSync have either seen major funding rounds or their token prices soar in recent months. (Notably, Arbitrum has no token.)
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In tandem with the launch, Offchain Labs is partnering with developer platform Alchemy to help devs more easily tap into the new network.
Alchemy, which is said to power 70% of the top Ethereum applications and over $30 billion in on-chain transactions, announced a similar partnership with Dapper Labs’ Flow blockchain in March. Alchemy works with Dapper, OpenSea, Aave and many others.
Rollup ramp-up
Rollup technology is key to scaling Ethereum apps. A rollup is basically a sidechain aggregation of transactions in a smart contract that will settle to the mainchain at some future point. The “rollup” refers to the way the sidechain bundles many transactions to be committed to the mainchain.
Arbitrum is an “optimistic rollup”, meaning that state changes are first published with minimal inspection and fraud checking, allowing for additional speed. Any user, however, can flag invalid updates as fraudulent and the bad actors are punished by the protocol, while the updates are rolled back. The Arbitrum-Alchemy partnership drastically lowers the barriers to entry by meeting a large swath of developers where they already are.
“High gas fees and slow transaction mining times have been the biggest pain points for Ethereum developers and users for quite some time,” said Alchemy Product Manager Michael Garland. Arbitrum’s layer 2 technology provides a long-needed solution, he said.
Grabbing market share
In development since 2018, Arbitrum is the first general smart contract Ethereum layer 2 rollup solution to go live, according to Offchian Labs’ Director of Partnerships and Strategy A.J. Warner.
The success of any layer 2 rides on the adoption of both infrastructure projects and dapps, so given Alchemy’s reach in the blockchain developer community, native support is key, he said.
“Arbitrum, among other differentiating tech breakthroughs, is the only rollup that supports porting Ethereum contracts at the bytecode level (without making any code modifications),” Warner said via email.
Arbitrum’s goal is to become the default layer 2 rollup for Ethereum users and developers. Crypto exchange OKEx recently announced it will support direct deposits and withdrawals into Arbitrum for its users to avoid expensive gas fees. According to Arbitrum, over 150 projects have requested launch-day access to Arbitrum.
“Alchemy’s developer platform and Offchain Labs’ layer 2 are two of the most critical tools available to blockchain developers,” said Joey Krug, co-chief investment officer at Pantera, which invested in Arbitrum, adding:
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Ethereum Price Prediction: Rally Fades Despite Billionaires’ Blessing
The Ethereum price rally has stalled at $2,900 and may decline to $2,500. However, the Bulls will cheer the news that Carl Icahn is a big fan and wants in.
Talking to Bloomberg Markets, famed activist investor Carl Icahn has declared: “crypto is here to stay”.
He said he doesn’t own any cryptocurrencies at the moment. However, his firm will soon be involved in a “relatively big way.”
Despite the latest billionaire endorsement. The Ethereum price rally has paused at yesterday’s 6-day high of $2,910. ETH is trading at $2,555, having retreated 8% from the session top.
This follows Bitcoin’s failure stay above $40,000. The longs, still scarred from the recent turmoil, rightly decided to book profits on this latest bounce.
Icahn is the latest high-profile money manager to switch his attention to digital assets. Paul Tudor-Jones, Stanley Druckenmiller, and more recently, Bridgewaters Ray Dalio have given Bitcoin their backing.
Ethereum price bulls will be happy that Icahn favours ETH to BTC:
“With Ethereum, it’s the underlying blockchain. So, Ethereum has two things – you can use it as a payment system, you can use it as a store of value.”
He went on to add: “Bitcoin to me is just a store of value.“
Nonetheless, ETH is down by -$250 to the $2,650 support level. If the price fails to hold here, it may well have more downside in the short term.
Ethereum Price Outlook
On Tuesday, the Ethereum price successfully cleared the resistance of a descending trend line at $2,620. The line, in place from the 18th of May, the day before the infamous ‘crypto crash,’ had been a strong area of resistance.
Therefore, once the price cleared it, buyers rushed in. This lifted the Ethereum price to the $2,900 resistance. ETH failed to hold the gains, and the price retreated to $2,660 before yesterday’s second attempt at $2,900.
ETH is now supported between $2,650 and $2,700. This area held well on the previous pull-back from $2,900.
If the price loses this support level, it may drop back to the trend line, which is now at $2,470.
However, if the Ethereum price manages to trade higher through $2,900, it may once again be knocking on the door of $3,000.
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