Binance is working on a bridge that will allow AVAX holders to deposit and withdraw tokens directly to their Metamask or Web3 wallets.
Previously, withdrawing AVAX from an exchange required sending assets to an Avalanche Wallet and then bridging the tokens a second time to gain access to the AVAX C-Chain.
The AVAX C-Chain is “The Contract (C) Chain,” allowing users to run Ethereum Virtual Machine (EVM) contracts alongside regular smart contracts. The C-Chain provides users with access to popular dApps such as DeFi, NFTs, and ERC-20 tokens.
AVAX already has a working bridge that allows 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 in a Web3 wallet, which means users would have to withdraw their assets from an exchange, which would increase the cost and steps required.
More than $1 billion in Ethereum assets were sent through the bridge via Avalanche, indicating that a bridge on the world’s leading exchange could be even more profitable for AVAX.
By omitting these steps and allowing direct withdrawals, the Binance bridge will allow AVAX holders to withdraw their tokens directly to their Web3 wallet, bypassing the additional steps required by other bridges.
AVAX token holders first noticed the change on Binance, which now displays an option for “AVAX C-Chian network” when withdrawing their AVAX tokens.
The network option is currently “suspended,” which could mean that the bridge is in development and will be implemented soon. Although there has been no official announcement or acknowledgement by Binance, the community remains hopeful that a functional bridge straight from an exchange will be released soon.
With the addition of the Binance bridge and Aave and Curve integrations still on the way, AVAX is expected to continue its upward trend and break February’s all-time high of $59.94.
Following the launch of Avalanche Rush – a new DeFi incentive program backed by Aave and Curve Finance – the introduction of the bridge would provide a further bullish catalyst for AVAX. The $180 million liquidity mining incentive program aided AVAX’s price rise to a recent high of $58.98, but it has since retraced back to $43 due to initial interest in the Layer-1 ecosystem.
According to DeFiLlama data, the Avalance DeFi ecosystem currently has $2.2 billion in Total Value Locked (TVL) – a 700 percent increase since the incentive program’s inception.