New report from Gate Research: A Review on the Recent Performance and Developments of Layer 2s
New report from Gate Research: A Review on the Recent Performance and Developments of Layer 2s
Gate Research's Latest Report "Gate Research: A Review on the Recent Performance and Developments of Layer 2s" provides a comprehensive overview of the Layer 2 sector, analyzing the performance of Layer 2 tokens and the latest developments in various protocols, highlighting the current competitive landscape and key development trends in the industry.
Key Takeaways:
Rapid Rise of Layer 2 Networks: According to L2Beat data, there are currently 71 Layer 2 projects live, with another 81 slated for launch. Approximately 90% of Ethereum transactions now occur on Layer 2 networks, indicating that these scaling solutions have become a vital part of the Ethereum ecosystem. Among all Layer 2 solutions, Rollups are the most popular category, particularly Optimistic Rollups, which account for 80% of the transaction volume, primarily led by platforms like Arbitrum and Optimism.
Rapid Growth of Base and Blast: In 2024, Base has emerged as a star project in the Layer 2 ecosystem, driven by the meme coin trading frenzy and a surge in developer activity, with daily transactions skyrocketing from 300,000 to between 3 million and 4 million. Blast has also rapidly risen due to successful marketing strategies and attractive yield opportunities, but its TVL dropped by nearly 50% after the end of its airdrop campaign. The rapid growth of these two projects has brought new vitality and competition to the Layer 2 ecosystem.
Total Value Locked (TVL) and Market Performance of Layer 2 Networks: Arbitrum remains the leader among Layer 2 networks, topping the list with a TVL of $2.72 billion, driving substantial on-chain activity as the core of the DeFi ecosystem. Base's TVL grew by 245% in 2024 and currently stands at around $1.5 billion. In contrast, other ZK Rollup projects like Scroll and Linea have shown steady upward trends in TVL growth driven by continuous incentive programs.
Weak Market Performance of Layer 2 Tokens: Despite the significant increase in the adoption rate and transaction volume of Layer 2 networks, the market performance of Layer 2 tokens has been relatively weak. The prices of Layer 2 tokens have fallen by nearly 50% in the past three months, mainly due to the lack of value accrual mechanisms and the "low float, high fully diluted valuation (FDV)" structure, which exposes token holders to ongoing selling pressure.
Innovations and Challenges in Layer 2 Technology and Governance: Arbitrum and Optimism are working to enhance network security and user experience by introducing new technical roadmaps and governance proposals. Arbitrum's "Bounded Liquidity Delay (BoLD)" protocol and the upcoming ARB token staking feature demonstrate its progress in governance and technological innovation. Meanwhile, Optimism plans to address existing security vulnerabilities through a hard fork to improve network stability and security.
Future Trends and Opportunities: The Layer 2 ecosystem still has significant room for growth in the coming months and years. New trends such as interoperability solutions based on OP Stack and ZK Stack, the rise of Based Rollups, and the evolution of fraud-proof mechanisms offer new directions for the future development of Layer 2 networks. Despite the weak performance of Layer 2 tokens, these projects are considered a critical foundation for the future of the crypto industry, given their significant advantages in scalability and security.
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Gate Team
Nov 7th, 2024
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