Does Vitalik Buterin support Unichain? Community digs behind the trend

Amid Unichain’s launch, there is speculation that Ethereum founder Vitalik Buterin is not a fan. Stake With Pride on

Buterin claimed that Uniswap’s value proposition is easy trading, so a rollup from the DEX would make no sense. The conversation excites

Unichain is alive despite major Buterin rejection

Vitalik Buterin’s comment dates back to September 2022. Although the context behind the comment remains unknown, many believe that he attempted to manage the Uniswap vision down to the smallest detail. In addition to talking about the prospects of a rollup or L2 product, he also said that Uniswap could thrive better if it was deployed on every rollup.

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To be fair, Uniswap has expanded its base since its launch and is based on multiple protocols. The chains that host Uniswap include Ethereum, Base and Binance Smart Chain. Despite this subtle Buterin antagonism, two days ago Uniswap launched the testnet for Unichain, a new Ethereum Layer 2 solution.

The core function of the blockchain solution is cross-chain interoperability and functioning as a higher-speed, decentralized validation network. Unichain, which is not yet available on mainnet, is built as an open-source blockchain, making it easier for other chains to adopt.

According to Uniswap, the creation of Unichain is the answer to addressing the challenges such as speed and high transaction costs that have plagued the DeFi sector. Unchain was designed to demonstrate the ability to process transactions quickly and almost instantly. For the testnet, Unichain recorded a block time of one second, although the peak target was sub-block times of 200-250 milliseconds.

UNI Price Surge Amid Unichain’s Testnet Launch

The L2 solution will allow Uniswap to compete for market share. Uniswap created the technical architecture of Unichain in collaboration with Flashbots and Optimism. Significantly, this solution can increase market efficiency and reduce the loss of value to the Maximum Extractable Value (MEV).

Since Uniswap announced the launch of the L2 solution, its native token UNI has achieved a number of successes. Its key metrics lie on the green side of the on-chain charts. At the time of writing, UNI price was trading at $8.19, having risen 3.94% in the last 24 hours. In the last seven days, UNI has seen its market capitalization increase by over 20%, reflecting an overall positive development.

Like many other cryptocurrencies, trading volume has also seen a sharp decline, recording a 26.68% decline in the last 24 hours. Such a decline suggests that investors lack interest or confidence in the short term. This reduced volume is likely a healthy retest after intense volatility and strong growth.

Ethereum L2s plans to increase Ethereum’s scalability

Notably, the adoption of Ethereum L2 solutions is quickly becoming a regular occurrence in the crypto sector. Most of these crypto projects are focused on addressing Ethereum’s scalability challenge. L2Beat data suggests that the number of Layer 2 protocols attempting to solve Ethereum’s scalability problem currently stands at 105.

Of these L2 protocols, Arbitrum, Base, and Optimism’s OP Mainnet rank in the top three according to Total Value Locked (TVL). Arbitrum has the highest value at $13 billion, followed by Coinbase’s Base at $7.2 billion and OP Mainnet at $5.8 billion.

Buterin is also looking for other methods to improve Ethereum’s functionalities. He recently shared his vision for the ecosystem, which is about making Ethereum’s direction readable.