Kraken Selects Optimism for New Layer-2 Network

SUMMARY

Nearly a year after considering its own layer-2 network, Kraken has announced plans to launch one on the Ethereum blockchain, leveraging technology from Optimism.
As the sixth-largest crypto exchange globally, Kraken’s new network will follow the successful launch of Coinbase’s layer-2 network, Base, in mid-2023.

Kraken, the sixth-largest crypto exchange in the world, reported plans to launch its layer-2 network called Ink, built on the Ethereum blockchain and utilizing innovation from Optimism. This move comes about a year after speculation that Kraken was considering creating its layer-2 network, following the amazing success of Coinbase’s layer-2 network, Base, which launched in mid-2023.

Kraken’s new network is anticipated to go live in early 2025. It is built on the OP stack, a customizable toolkit that permits developers to make their blockchains utilizing Optimism’s innovation. This decision reflects a developing trend in the crypto industry, as other layer-2 networks like Polygon, zkSync, Starknet, and Arbitrum have also presented their own stacks, seeking to attract firms to their technology.

The declaration signals a critical move, as Optimism has recently seen considerable adoption, with major firms opting to construct on its foundation. Besides Coinbase, companies like electronics mammoth Sony and decentralized exchange Uniswap have shown plans to develop layer-2 networks based on the OP stack. Optimism’s technique has situated it favorably in the market, and Kraken’s choice to construct on this framework could help set the OP stack as a leading provider for new Ethereum layer-2 networks.

Currently, Arbitrum is the largest layer-2 venture by total collateral value locked (TVL), boasting roughly $13.6 billion. In contrast, Optimism’s flagship network holds a TVL of approximately $6.1 billion. However, when considering the broader ecosystem of layer-2 ventures utilizing Optimism’s innovation, there are at least 43 rollups collectively branded as “Superchain,” with a combined TVL of $18.1 billion. Then again, Arbitrum supports 29 projects with a total TVL of around $14 billion.

Andrew Koller, founder of Ink, noted that the success of a layer-2 network is specifically connected to the value it conveys to users, which is made by a flourishing developer ecosystem. He communicated certainty that Ink’s interest in the Superchain would cultivate an interoperable and pluralistic on-chain environment, making it an ideal stage for the next generation of decentralized finance (DeFi) applications and conventions. Koller’s vision aligns with the developing accentuation on collaboration and integration within the crypto space, which could lead to more inventive solutions in the future.

This vital move by Kraken may further improve the appeal of Optimism’s innovation and might motivate other exchanges and companies to investigate similar partnerships, eventually forming the future scene of Ethereum’s layer-2 networks.