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Red Market Reveals True Ethereum L2 Users: In-Depth Research
- Ethereum Layer 2 solutions emerged to fix congestion and increase efficiency. Nine Layer 2s show good potential based on user activity and value locked, including Mantle and Base with the largest MAU. Comparing FDV and circulating market caps reveal many tokens have not yet circulated. Bridging inflows and outflows show new user activity and capital flow into some L2s, whereas Linea, ZKSync, and Blast have negative net flows. Blast has the most core developers, signifying its productivity. Developer activity is measured by the number of code commits and is crucial for blockchain strength assessment.
- The market prices downturn known as the red market sees which Ethereum L2s can withstand the downturn; some L2s only show token value potential instead of user engagement. TVL is crucial for assessing L2s and measuring funds through contracts, staking, and liquidity pools. Incentive programs like Scroll, Linea, and Mantle have sustained their TVL.
- FDV and circulating market caps show most tokens are locked, reducing the perceived value of rewards on recent airdrops. L2Beat data showed that a few L2s had real user engagement, with FDV above $1 billion.
- Ethereum L2s help reduce the cost of successful transactions by reducing gas fees. A post-Dencun upgrade proved Base had solid transaction growth fueled by memecoins. Meanwhile, ZKSync and Linea, despite incentives, cannot increase their growth rate as Base.
- Starknet is lagging behind, overhyped compared to Arbitrum, Optimism, and ZKSync. The number of core developers on Blast exceeds other L2s, signifying productivity.
- The red market reveals which Ethereum L2s are regarded as long-term potential due to user activity and value locked, showing which chains could retain users. These records serve as accurate blockchain data, enabling investors to know where the money is going.
- Altcoin Buzz is not responsible for any losses incurred as a result of any investments related to the information provided in this article. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. This article has been sponsored by Common Wealth and Three Protocol.
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