Canto rallies 13% following plans to migrate to Ethereum as layer2 network

Canto, a Cosmos-based layer1 community, plans emigrate to Ethereum (ETH) and grow to be a layer-2 community.

Following the information, the CANTO token jumped by almost 13% to $0.1285 as of press time, in keeping with CryptoSlate’s knowledge.

Canto to construct on Polygon.

Canto core builders will construct a zero-knowledge rollup on Ethereum Layer-2 utilizing the Polygon (MATIC) Chain Improvement Equipment. Polygon Labs says Canto can faucet “the liquidity of a unified Polygon ecosystem with easy accessibility to Ethereum.”

“By becoming a member of a rising variety of chains that extends blockspace, the transfer displays a big step towards a “neofinance” future, or the protocolization of current finance,” Polygon added.

Polygon co-founder Sandeep Nailwal expressed delight with the transfer, noting that Canto’s migration would “turbocharge the neofinance revolution.” He added:

“The main target of a ZK-migrated Canto L2 is neofinance – bringing off-chain property onto crypto rails. However to do that, the Canto neighborhood wants to have the ability to faucet Ethereum’s liquidity in a trustless and safe method, with out compromise. A Canto L2 will function a trustless ZK bridge to Ethereum, out-of-the-box.

On the identical time, Canto retains its L1 sovereignty, even because the neighborhood scales its core ethos of liquidity as a public good.”

Different networks, together with Astar, Palm, IDEX, and Gnosis Pay, have made related strikes to construct ZK rollups on Ethereum’s second layer utilizing Polygon CDK. Nailwal said, “the plan is for all CDK-powered chains to be interconnected and interoperable, with entry to the shared liquidity of all different chains.”

Layer2 networks specialization

The migration of a number of layer-1 networks to Ethereum’s second layer is concurrent with the maturation of the layer-2 ecosystem. New specialised networks are rising in response to those developments.

Blockchain analytical agency IntoTheBlock reported that main layer-2 networks are experiencing development in distinct domains.

Optimism (OP), as an example, is carving a distinct segment for itself as a superchain. Many networks are adopting the OP stack for his or her layer-2 options. In the meantime, Polygon and Arbitrum (ARB) actively assist scaling options by way of their respective applied sciences.

In decentralized finance (DeFi), Arbitrum stands out as a dominant power, boasting the very best liquidity and complete worth locked (TVL) amongst all layer-2 networks. Coinbase Layer-2 Base has additionally demonstrated vital transaction quantity and a rising consumer base, positioning it as a beautiful choice for decentralized social functions.