CELR climbs to a new all-time high (ATH) after Celer introduced a cross-chain bridge that allows traders to move assets together between other Layer 1 and Layer 2 platforms.
High transaction costs have been a problem for investors and developers for more than a decade, and the problem will be exacerbated by the introduction of DeFi and NFTs in 2021, resulting in high levels of activity.
Since the completion of Ethereum’s London hard fork, cross-chain bridges and Layer 2 solutions have been modified as options to mitigate the high fees on the Ethereum network. Over the past two weeks, Celer, a Layer 2 scaling solution that uses off-chain transaction management to increase network throughput, has seen an increase in user activity.
Data from TradingView shows that CELR price has risen 400% since hitting a low of $ 0.0398 on Sept. 8, to $ 0.199 on Sept. 26, when 24-hour trading volume rose to $ 1.27 billion has risen.
4 hour frame CELR price chart | Source: TradingView
The three reasons CELR raised the price are the release of the cross-chain software protocol cBridge, new integrations that have expanded the ecosystem, and an increase in the overall strength and demand for Layer-2 solutions.
Cross-chain connection via cBridge
Probably the biggest development of the Celer protocol in 2021 is the release of the cross-chain bridge solution cBridge, which went live on the mainnet on July 22nd.
At the time of writing, cBridge supports the transfer of assets between 10 different protocols including Ethereum, Binance Smart Chain (BSC), Polygon, Fantom, and Avalanche.
Networks supported by cBridge | Source: Celer network
Data from Celer provided shows that in the two months since cBridge was launched, the protocol has facilitated the movement of more than $ 242 million in assets between networks as it grows in popularity in the crypto community.
Daily trading volume on cBridge | Source: Celer network
The Celer ecosystem is growing
The second reason CELR won last month is to expand the project’s ecosystem.
The introduction of Optimism and Arbitrum and the integration of Celer’s cross-chain bridge into Layer 2 solutions could be key factors in CELR’s price recovery.
When cBridge was first released it supported Polygon, Ethereum, BSC, Arbitrum, and Optimism. In the two months after launch, support for Fantom, xDAI, Avalanche, OKExChain and Heco was added, effectively doubling the reach and number of users interacting with CELR.
Celer’s functionality has also resulted in a number of integrations such as: B. to TokenPocket and ONTO crypto wallets. CELR was also recently listed on the WOO Network and the BarterTrade exchange.
Increasing demand for Layer 2 solutions
The third reason for the overall strength of CELR is the increasing demand and activity in Etherscan Layer 2 protocols and data. shows Gas fees continue to rise as the activity of the Ethereum network increases.
Average gas fees on the Ethereum network | Source: Etherscan
Arbitrum and optimism have come to life after years of development, and users have now started migrating assets to their extensible solutions as DeFi protocols slowly integrate the technology.
To capture the momentum created after the release of Arbitrum, Celer’s cross-chain bridge provides a solution during the mandatory 7-day withdrawal period when users want to migrate assets from Arbitrum back to Ethereum.
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According to Cointelegraph