Canto rallies 13% following plans to migrate to Ethereum ( $0.00 ) as layer2 network

Canto, a Cosmos-based layer1 network, plans to migrate to Ethereum ( $0.00 ) (ETH) and become a layer-2 network.

Following the news, the CANTO token jumped by nearly 13% to $0.1285 as of press time, according to CryptoSlate’s data.

Canto to build on Polygon.

Canto core developers will build a zero-knowledge rollup on Ethereum ( $0.00 ) Layer-2 using the Polygon (MATIC) Chain Development Kit. Polygon Labs says Canto can tap “the liquidity of a unified Polygon ecosystem with easy access to Ethereum ( $0.00 ) .”

“By joining a growing number of chains that extends blockspace, the move reflects a significant step toward a “neofinance” future, or the protocolization of existing finance,” Polygon added.

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

“The focus of a ZK-migrated Canto L2 is neofinance – bringing off-chain assets onto crypto rails. But to do this, the Canto community needs to be able to tap Ethereum ( $0.00 ) ’s liquidity in a trustless and secure way, without compromise. A Canto L2 will feature a trustless ZK bridge to Ethereum ( $0.00 ) , out-of-the-box.

At the same time, Canto retains its L1 sovereignty, even as the community scales its core ethos of liquidity as a public good.”

Other networks, including Astar, Palm, IDEX, and Gnosis Pay, have made similar moves to build ZK rollups on Ethereum ( $0.00 ) ’s second layer using Polygon CDK. Nailwal stated, “the plan is for all CDK-powered chains to be interconnected and interoperable, with access to the shared liquidity of all other chains.”

Layer2 networks specialization

The migration of several layer-1 networks to Ethereum ( $0.00 ) ’s second layer is concurrent with the maturation of the layer-2 ecosystem. New specialized networks are emerging in response to these developments.

Blockchain analytical firm IntoTheBlock reported that major layer-2 networks are experiencing growth in distinct domains.

Optimism (OP), for instance, is carving a niche for itself as a superchain. Many networks are adopting the OP stack for their layer-2 solutions. Meanwhile, Polygon and Arbitrum (ARB) actively support scaling solutions through their respective technologies.

In decentralized finance (DeFi), Arbitrum stands out as a dominant force, boasting the highest liquidity and total value locked (TVL) among all layer-2 networks. Coinbase Layer-2 Base has also demonstrated significant transaction volume and a growing user base, positioning it as an attractive option for decentralized social applications.

Source