Binance is developing a bridge that will allow AVAX holders to deposit and withdraw their tokens directly to their Metamask or Web3 wallet.
Previously, AVAX withdrawals from an exchange would involve sending assets to an Avalanche Wallet and then bridging the tokens a second time to access the AVAX C-Chain.
The AVAX C-Chain is “The Contract (C) Chain” which allows users to execute Ethereum Virtual Machine (EVM) contracts alongside regular smart contracts. The C-Chain grants users access to sought-after dApps such as DeFi, NFTs and ERC-20 tokens.
AVAX already has a functional bridge, which enables users to “bridge” their Ethereum or other assets to the AVAX C-Chain on a Web3 wallet for minimal fees. However, this requires the funds to be on a Web3 wallet, meaning users would have to withdraw their assets from an exchange, adding to the cost and steps required.
The bridge saw more than $1 billion in Ethereum assets sent via Avalanche, indicating that a bridge on the world’s leading exchange could prove even more lucrative for AVAX.
By skipping these processes and allowing direct withdrawals, the Binance bridge will allow AVAX holders to withdraw their tokens straight to their Web3 wallet and skip the additional processes required by other bridges.
AVAX holders first spotted the development on Binance, which currently shows an option for “AVAX C-Chian network” when withdrawing their AVAX tokens.
A Binance-supported #BSC <> #Avalanche bridge is currently being worked on. https://t.co/ePJOrtjIDP
— :omer (@demirelo) September 6, 2021
Currently, the network option is “suspended”, which potentially means that the bridge is in development and may be implemented soon. Although no official announcement or acknowledgement has been made by Binance, the community remains optimistic that a functional bridge straight from an exchange could be released soon.
The introduction of the bridge would provide a further bullish catalyst for AVAX following the launch of Avalanche Rush – a new DeFi incentive program backed by Aave and Curve Finance. The $180m liquidity mining incentive program contributed greatly to AVAX’s surge in price to a recent high of $58.98, but has retraced back to $43 following the initial interest in the Layer-1 ecosystem.
According to data from DeFiLlama, The Avalance DeFi ecosystem currently has $2.2bn in Total Value Locked (TVL) – a 700% increase since the introduction of the incentive program.
Now, with the addition of the Binance bridge and Aave and Curve integrations still to come, it’s expected that AVAX could continue its uptrend and break February’s all-time high of $59.94.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.