The cryptocurrency space witnessed a significant development today as Canto, a Cosmos-based layer-1 network, announced its ambitious plan to migrate to Ethereum (ETH) and transform into a layer-2 network. This announcement sent shockwaves through the crypto community and the CANTO altcoin experienced a significant price increase. On the other hand, the acquisition of DWF Labs caused a jump in the SPELL coin. Here are the details…
Altcoin CANTO rose 13 percent
Surprisingly, following the transition announcement, the value of the CANTO token increased by approximately 13%, reaching $0.1285 at the time of writing, according to data. This significant price increase underscores the market’s excitement about Canto’s transition to Ethereum’s layer-2 ecosystem. Canto’s core development team chose to leverage the Polygon (MATIC) Chain Development Kit (CDK) to create a zero-knowledge rollup on Ethereum’s Layer-2. This strategic move allows Canto to leverage the liquidity of the combined Polygon ecosystem while providing easy access to Ethereum.
Sandeep Nailwal, co-founder of Polygon, expressed excitement about the transition of Canto and its potential to accelerate the “neofinance revolution.” He emphasized that they are focused on bringing off-chain assets onto the crypto rails while providing reliable and secure access to Ethereum’s liquidity. “A Canto L2 will have a reliable ZK bridge to Ethereum out of the box, while maintaining L1 sovereignty,” Nailwal added. Canto’s move to Ethereum’s second layer is in line with a broader trend in the cryptocurrency space. Several layer-1 networks are making similar moves to take advantage of the maturing layer-2 ecosystem.
Layer-2 networks are gaining importance
The plan is for all CDK-backed chains, including Astar, Palm, IDEX and Gnosis Pay, to be interconnected and interoperable, providing access to shared liquidity across various chains. As Layer-2 solutions mature, specialized networks are emerging to address specific use cases. Optimism (OP) has established itself as a superchain, while Arbitrum (ARB) dominates the decentralized finance (DeFi) landscape with the highest liquidity and total value locked (TVL) among layer-2 networks. Coinbase Layer-2 Base is also attracting attention, becoming an attractive option for decentralized social applications.
DWF Labs’ cryptocurrency transactions attracted attention
As a parallel development, on September 19, DWF Labs, one of the important market makers of the cryptocurrency market, continued its purchases of altcoins. Lookonchain, a popular cryptocurrency platform, reported that DWF Labs withdrew 3.3 million SPELL tokens worth $1.57 million from the Money MIM Treasury Wallet on the same day. This move caused a 16 percent increase in the price of SPELL on Binance, with SPELL briefly reaching $0.0005433 and currently trading at $0.0005223 at the time of writing. However, it is worth noting that minutes ago, DWF Labs transferred 1,000 SPELL to Binance.
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