Analysis of Weekly Trending Crypto Track - Layer 2

TL；DR

Last week, the crypto market experienced an overall upward trend, with most tracks showing signs of recovery, but the market itself has yet to emerge. Among the various track projects that rank high in the top rankings, measured by the two dimensions of overall small increase and market ranking, the track with relatively high heat this week is Layer2.

The overall rise and fall rate of the Layer2 track in a week is 6%, which is a relatively mainstream range among various mainstream tracks. There is still a certain expectation of market growth in the short term, but the popularity of the Layer2 track in a week is representative. Therefore, we give a basic introduction this week and briefly introduce the popular projects, including popular dApps or coin issuance information, and make some predictions about the market trend.

The current market cap of the Layer1 track is $20.1 billion, with a rise and fall of 2.4% within 24 hours, and the overall market has rebounded within the day.

This article mainly summarizes and explains the current mainstream network projects in the Layer2 track.

Trending Projects

MODE

MODE is a modular DeFi L2 network built with Optimism. It aims to enable developers and users to provide a better-performing and comprehensive application eco and receive corresponding rewards directly based on their contributions. MODE has built a new on-chain economic that enables developers to expand their applications and increase users’ profits. MODE was compatible with various types of EVM chains in the past and supports rapid deployment of various applications.

The network officially launched the TGE token in May 2024. The price of the MODE token was around $0.062 after its launch, and subsequently fluctuated downwards. As of now, it remains within the price range of $0.02.

The price of MODE has risen by 28.7% this week, and in the current market where overall performance is still sluggish, the coin has a relatively high increase in the Layer2 track, with a weekly high near the $0.023 price range.

The reason for this market trend is that MODE has recently achieved full chain scalability with Optimism, and MODE network assets can now be seamlessly transferred on Ethereum and OP networks. In the current context of the rise of various L2 technologies, achieving full chain support has become an increasingly frequent action for most networks and projects in recent times, and the implementation of MODE has provided significant support for coin prices.

However, there is still considerable room for expansion in MODE. In addition to the OP network, many networks in the L2 track require cross-chain connections. The corresponding dynamic factors, such as cross-chain bridging deployment, will still influence the price trend of MODE coins.

MODE Price Data (Source: coingecko)

WALV

WALV is the eco token of Alvey, a DEX project of Ethereum L2. Alvey is a decentralized L2 blockchain POA, POS, and POB based on the Ethereum virtual machine, with a transaction speed of +200k transactions per second. Users can participate in gameplay such as staking and exchanging.

The Alvey eco currently supports diverse use cases such as VR and Metaverse, as well as dApp projects such as NFT and DeFi. As a well-established L2 network that emerged in 2022, Alvey has integrated mainstream applications in the current market, but its native token WALV has mainly shown a continuous decline since its launch.

The highpoint of WALV’s price for the week was around $0.0073, and the low point was around $0.00603. The weekly fluctuation was around 16.8%, and the current price remains around $0.00719. The price increase of the coin has performed well in the Layer2 track.

The reason for the short-term rapid rise of this project is that the overall movement of the project has been relatively frequent recently. Alvery has been making good efforts in the DeFi track recently, with the overall TVL of the network reaching a high level, which has had a significant impact on the price of WALV.

WALV Price Data (Source: coingecko)

OP

Optimism is a fast, stable, scalable, and low-cost Ethereum Layer 2 blockchain. It runs on top of the Ethereum blockchain (Layer1) to help alleviate congestion, thereby reducing transaction costs and processing time.

As a project that has long been popular in the Ethereum Layer2 track, Optimism has recently shown a good upward trend with the small rebound of the L2 track. The OP token has risen by 24.9% in one week, with a high price of $1.77 per week, and is currently in a short-term uptrend cycle. It is expected to see a certain increase next week.

OP is a native token belonging to the Optimism network and has recently integrated with other L2 networks for cross-chain deployment. However, the overall upward trend is still due to the overall recovery of the Layer2 track.

The coin will likely continue its rapid upward trend in the short term, with a high probability of reaching above $2. As the market gradually recovers, the overall performance of the Layer2 track will also be affected by the early rise of OP.

OP Price Data (Source: coingecko)

Post Market Forecast

Compared to other projects in the field, the performance of Layer2 this week belongs to a short-term upward trend that follows the recovery of the market, with moderate gains. Although the market as a whole has not yet emerged from the current fluctuation cycle, the overall recovery signal is quite obvious. The Layer2 track has more dynamics this week, so the upward trend is relatively good.

This upward cycle is likely to further strengthen with the market’s recovery, and the track is expected to continue to rise in the coming months.

Hot News

TRUMP has experienced a rapid intraday rise this week due to the shooting and assassination attempt of former US President Trump, which has sparked reactions from various sectors of society, including the crypto market.

TRUMP, as a representative Trump-themed MEME token for a long time, has experienced a significant upward trend in a short period of time due to the impact of this incident, with a weekly increase of 24.3% and a high price of $9.51.

The overall performance of the crypto market this week has been affected by the market cycle and news factors, showing a certain rebound trend, but the overall market has yet to show a significant upward trend. Layer2, as one of the consensus tracks in the current market, has shown a relatively obvious upward trend, and it will further rise in the short term with the recovery of the market.