Ethereum News Today: South Korea's Upbit Bets Big on Ethereum's Layer-2 Future

South Korea’s largest cryptocurrency exchange, Upbit, is reportedly preparing to launch a Layer-2 blockchain network built on Ethereum, named GIWA. According to reports from Asian crypto communities, the project is under development by Upbit’s parent company, Dunamu, which has filed trademark applications for the name and associated branding, including stylized logos. While no official launch date or website has been confirmed, the trademark activity suggests a structured development path toward a branded blockchain platform or ecosystem [1].

The GIWA project is expected to position Upbit in direct competition with other major players in the Layer-2 space, such as Binance’s BNB Chain and Coinbase’s Base Network. This move aligns with broader trends in the global crypto market, where Layer-2 solutions are increasingly being leveraged to reduce transaction costs and scale blockchain networks. Upbit, which dominates over 80% of South Korea’s daily crypto trading volume, could use GIWA to expand its influence across the broader Asian market [1].

The anticipated launch of GIWA comes as Ethereum's Layer-2 ecosystem continues to grow in importance. In recent months, Layer-2 platforms like Arbitrum, Optimism, and zkSync have seen significant adoption, driven by their ability to reduce gas fees and improve throughput. These platforms have attracted billions in total value locked (TVL) and facilitated the growth of decentralized applications (dApps), particularly in decentralized finance (DeFi) and NFT markets. GIWA's potential to support similar use cases could further accelerate the development of native Asian dApps for local and global users [3].

The timing of Upbit’s GIWA initiative also coincides with rising cryptocurrency demand in Asia, particularly in South Korea. On-chain data from CryptoQuant’s Korean Premium Index indicates that Bitcoin prices on Korean exchanges have outpaced those on global platforms, with a 130% increase since reaching a low of -2.05 on July 14. By September 8, the index had climbed to 0.61, suggesting heightened demand within the region. Analysts attribute this trend to broader geopolitical factors, including escalating U.S.-China trade tensions and a global shift away from the U.S. dollar [1].

As Ethereum’s Layer-2 ecosystem matures, the role of bridges—platforms that facilitate asset transfers between different blockchain networks—has become increasingly critical. These bridges not only enable liquidity flows but also create new opportunities for traders and investors. For instance, traders monitor bridge inflows to predict which Layer-2 tokens might experience price surges. While this infrastructure introduces new risks, including security vulnerabilities, it also supports the broader adoption of decentralized technologies by making them more accessible to retail users [3].

Upbit’s GIWA project is poised to contribute to this evolving landscape, potentially leveraging Ethereum’s security while offering lower transaction costs and greater scalability. As the launch date approaches, the market will be watching closely to see how GIWA integrates with existing DeFi protocols and whether it can attract developers and users to build on its platform. Given the competitive dynamics within the Layer-2 space and the growing demand for scalable crypto solutions, the success of GIWA could significantly influence the trajectory of South Korea’s crypto market and its global positioning in 2025 [1].

Source:

[1] Upbit Rumored to Launch GIWA Layer-2 Chain on Ethereum (https://finance.yahoo.com/news/upbit-rumored-launch-giwa-layer-210610619.html)

[2] Upbit operator rumored to launch GIWA chain (https://cryptobriefing.com/upbit-launches-giwa-chain-blockchain-announcement/)

[3] Ethereum's Layer 2 Boom: Lower Gas, Higher Activity & Why MEXC Traders Should Care (https://blog.mexc.com/ethereums-layer-2-boom-lower-gas-higher-activity-why-mexc-traders-should-care/)