Crypto Exchange Kraken Plans to Launch an Ethereum Layer 2 Called Ink

Kraken, a top 20 centralized exchange (CEX) by trading volume, today said it’s developing an Ethereum Layer 2 blockchain called InkChain.

Ink is built on the Optimism OP stack. Its test net is expected to go live on Nov. 11, while its main net launch is anticipated for 2025. Layer 2s are Ethereum scaling networks and Optimism OP stack is one of the main two types of technologies underlying these networks.

Ink said in its announcement it will bring “real change to crypto” with a “better experience for users, a long-term vision to create simplified DeFi,” and “a focus on creating a home for DeFi builders.” Specific details are scarce, though.

The chain is the latest Ethereum Layer 2 to be announced in 2024. Uniswap’s Unichain is the most recent large Layer 2 announcement, which launched its testnet less than two weeks ago.

Total Value Locked (TVL) on Ethereum Layer 2’s is down 10% in the last 90 days, while transactions per second (TPS) remain flat, according to L2Beat

Ethereum’s ETH continues to lose market share to competitors such as Solana, with the SOL/ETH ratio at all-time highs, and ETH mainnet TVL falling over the last 6 months while Solana’s surges. ETH’s TVL is down 6% to $67 billion since April, while Solana’s is up 20% to $8 billion in the same time period, according to DeFiLlama.

With the growing number of Layer 2s, while activity on those chains has stagnated in the second half of the year and ETH underperforms, some users are calling for more adoption and less blockchain infrastructure. One user, who goes by Icebergy on social media satirically posted “I think we need more chains and layers.”