ReportWire

Tag: Layer 2

  • Uniswap DEX comprises 37% of Ethereum L2 volume

    Uniswap DEX comprises 37% of Ethereum L2 volume

    [ad_1]

    The leading Ethereum decentralized exchange, Uniswap, contributes substantially more volume to layer 2 blockchains compared to the activity seen two years ago.

    The decentralized exchange (DEX) accounts for around 37% of the total trading volume on layer 2 while running atop crypto’s second-largest blockchain, Ethereum (ETH). 

    21.co researcher Tom Wan noted that the platform’s L2 volumes experienced more than 650% growth in 24 months, increasing from around $4 billion in 2022 to over $30 billion this year. The analysts added that this trend could strengthen even further if more quality protocols launch on layer 2 networks like Arbitrum, Coinbase’s Base, and Optimism.

    “L2s have been gaining more economic activities, specifically Base and Arbitrum, which account for 82% of the total L2 volume on Uniswap. I would expect the dominance of L2s’ volume on Uniswap will continue to grow to 50% by the end of this year.”

    Tom Wan, 21.co researcher

    Data showed that the exchange has only contributed 2.9% of the total volume on altcoin L1s, but Wan opined that this narrative may see a shift in the future. Wan explained that high-performance EVM-compatible L1s combined with a multichain expansion strategy could allow the DEX to capture more volume on networks like Sei and Monad. 

    UNI DEX volume sheet | Source: Tom Wan, 21.co via Dune Analytics

    Crackdown on Uniswap

    Uniswap (UNI) was the first DEX on Ethereum and remains the largest on-chain trading venue on the crypto L1 blockchain. The protocol boasts over $2 trillion in cumulative trading volume in 17 chains. DefiLlama states users have also deposited more than $5.5 billion in total value-locked. 

    Uniswap
    Uniswap stats | Source: DefiLlama

    Founded in 2017 by Hayden Adams, the Brooklyn-based crypto service provider now faces possible enforcement action from the U.S. SEC, which is currently embroiled in a broad crypto industry crackdown. 

    As crypto.news reported, the SEC served Adams’ business a Wells Notice, and the DEX intends to defend itself against a “disappointing but not surprising” decision. 

    [ad_2]

    Naga Avan-Nomayo

    Source link

  • Elastos eyes $700b Bitcoin staking market with Layer 2 network

    Elastos eyes $700b Bitcoin staking market with Layer 2 network

    [ad_1]

    Elastos announced the launch of BeL2, a Layer 2 network built on Bitcoin, to introduce sophisticated BTC transactions on its blockchain.

    The blockchain network looks to introduce a key defi solution on Bitcoin (BTC) as innovations like inscriptions and spot ETF chatter fuel BTC’s narrative. The new L2 network will bring staking to Bitcoin and aim to unlock a potential multi-billion dollar market through its platform. 

    The arrival of BeL2 means that Bitcoin is now ‘smart’, highlighting the potential for Bitcoin holders to stake their assets directly and earn interest on their holdings. It’s always been an anomaly that Bitcoin reserves remained effectively ‘dormant’ between transactions.

    Sasha Mitchel, head of Strategy and operations, BeL2

    In addition to BTC staking and providing direct yield via the BeL2 network, Elastos also plans to offer cheap transactions on native decentralized applications. However, the company’s statement did not clarify if this product would integrate the Lighting network, another purpose-built L2 network focused on facilitating swift and affordable BTC-denominated transactions,

    Furthermore, Elastos plans to chart the defi course on BTC by enabling smart contract deployment and irreversible digital agreement between participants. 

    Now Bitcoin owners can put the world’s most popular, liquid, and secure digital currency to work, potentially unlocking over $700 billion in value.

    Sasha Mitchel, head of Strategy and operations, BeL2

    Elastos unveiled their plan to essentially bootstrap decentralized finance on Bitcoin during a period of increased interest in crypto’s largest blockchain and token. Not only is BTC up over 150 percent since the start of 2023 and eying a continued rally following a brief correction, users have also developed a technology called inscriptions.

    This involves adding digital data to transactions in a method akin to NFTs on blockchain like Ethereum and Solana. Inscriptions account for between 20  percent and 30 percent of total transaction fee revenue generated by BTC miners this year.  At the same time, inscriptions also consumed a minority share of block space according to Glassnode.

    Bitcoin inscriptions fee share | Source: Glassnode


    Follow Us on Google News

    [ad_2]

    Naga Avan-Nomayo

    Source link

  • Japanese firm CGV invests $5m in Blast network

    Japanese firm CGV invests $5m in Blast network

    [ad_1]

    Japanese firm CGV invests $5 million in the newly launched Layer 2 solution Blast network.

    The Japanese cryptocurrency investment firm CGV announced it has invested $5 million in the Blast network. This investment is part of a collaborative effort to further the development of this Layer 2 solution.

    Blast has garnered significant attention in the venture capital world, with heavyweights like Paradigm, Standard Crypto and Mechanism Capital investing a collective $20 million. The project is spearheaded by Pacman, the founder of Blur, and boasts a team with impressive credentials from MakerDAO, MIT, Yale University and Seoul National University.

    Since its launch on Nov. 21st, Blast has rapidly gained traction in the crypto space. Within just 48 hours of its launch, it achieved a Total Value Locked (TVL) of $570 million and has attracted over 50,000 users. On its debut week, Blast saw a massive inflow of $310 million. 

    The founder of CGV is bullish about Blast’s prospects, highlighting the ecosystem’s Ethereum Virtual Machine (EVM) compatibility and the extensive support resources available for developers. CGV’s Asia Partner, Kevin Ren, notes that Blast sets itself apart in the Layer 2 landscape by being the only Ethereum L2 offering native earnings in ETH and stablecoins. 

    The $5 million investment from CGV is earmarked for developing and investing in pioneering projects within the Blast network, covering a range of areas including crypto asset protocols, defi, NFTs, Real-World Assets (RWA), GameFi and more. 


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link

  • New Ethereum layer-2 network Blast sees a massive $310m inflow

    New Ethereum layer-2 network Blast sees a massive $310m inflow

    [ad_1]

    Blast’s innovative layer-2 blockchain sees $310 million in deposits amidst users’ criticisms. 

    Blast Bridge, a new Ethereum layer-2 blockchain, saw an inflow of $310 million in assets shortly after its debut. This significant influx of assets includes substantial deposits of 129,866.52 ETH through Lido and 42,587,100 DAI via Maker MSR.

    Launched by the co-founder of NFT marketplace Blur and supported by Paradigm, Blast is charting a unique path in the layer-2 domain. Its introduction has seen a remarkable accumulation of staked Ethereum (stETH) and stablecoins, signaling strong market interest.

    Blast’s on-chain data | Source: DeBank

    Blast’s approach to blockchain technology and backing from high-profile entities like Paradigm and the crypto-native investor group “eGirl Capital” has captured significant attention. The platform’s native staking feature is designed to yield returns through Ethereum staking and real-world assets, offering a distinct avenue for user investment growth.

    However, concerns have been raised about the risks associated with Blast’s operational model, particularly its reliance on the liquid-staking protocol Lido for exchanging assets for Blast points. Critics question the security and viability of locking total value locked (TVL) in a yet-to-materialize chain, suggesting possible weaknesses in the platform’s foundation.

    The Blast Points system has also been a topic of controversy. Some community members compare it to a pyramid scheme, highlighting the inability of users to access their staked assets until the bridge’s activation. This strategy necessitates user engagement through Blast points, a mechanism that continues to be closely scrutinized by industry watchers and participants alike.


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link

  • BLUR jumps 12% as Blur founder raises $20m for new L2 network

    BLUR jumps 12% as Blur founder raises $20m for new L2 network

    [ad_1]

    Additionally, Blur founder Tieshun Roquerre raised $40 million to contribute to the Blur ecosystem.

    Tieshun Roquerre, the founder of NFT marketplace Blur (also known as “Pacman”), is launching a new layer-2 network where users can reduce transaction costs for digital collectibles. In a thread posted to X on Nov. 21, Roquerre addressed high network fees, saying “hundreds of millions have been spent on gas trading NFTs.”

    Moreover, Roquerre says “almost every” decentralized application, or DApp, on a blockchain has an issue when users lock up their funds in pools, which do not generate yield for them.

    “This means that Blur users are losing money through depreciation. As I dug deeper, I realized that almost every dapp on-chain has this issue.”

    Tieshun Roquerre

    In a bid to solve all these issues “at once,” the Blur founder decided to launch Blast, a new layer-2 network with native yield for DApps, where users could avoid asset depreciation as well as reduce transaction costs for non-fungible tokens. For the new venture, Roquerre raised $20 million in funding from Paradigm, Standard Crypto and others.

    To earn yield, Blast “natively” participates in Ethereum (ETH) staking, automatically returning the staking yield to the network’s users and DApps. In addition to ETH, Blast also earns yield for stablecoins with USDB, the network’s native auto-rebasing stablecoin.

    Beyond Blast, Roquerre announced he had raised another $40 million to contribute to the Blur ecosystem. The proceeds are expected to be used for building DApps atop Blast in order to “continue advancing” NFTs on Ethereum as well. Amid the news, Blur’s native token BLUR jumped 12%, surging to $34, according to CoinGecko data.


    Follow Us on Google News

    [ad_2]

    Denis Omelchenko

    Source link

  • Analyst: Using This Metric In Ethereum Is Flawed, What’s The Alternative?

    Analyst: Using This Metric In Ethereum Is Flawed, What’s The Alternative?

    [ad_1]

    Going by the handle “@bkiepuszewski,” one X user contends that the transaction processing speed (TPS) metric analysts rely on to measure how fast a blockchain network like Ethereum or the BNB Chain processes transactions is flawed.

    Laying out reasons on X, the decentralized finance (DeFi) researcher is convinced that using an alternative metric, the User Ops per second (UOPS), could paint a clearer picture of how well a blockchain is utilized at all times. 

    Measuring Network Utilization

    Typically, blockchain utilization measures how much a given network, for instance, Bitcoin or Ethereum, is being used at a given point. This is critical because it can be used to measure adoption levels since those with higher utilization rates tend to have a broader, active base, which can make it successful over the long haul. 

    Ethereum price trends to the upside on the daily chart| Source: ETHUSDT on Binance, TradingView

    To gauge activity, this metric considers the number of transactions processed every second when dealing with simple transfers or the total value locked (TVL) when dealing with smart contracts deployed. 

    As of November 1, the average network utilization rate in Ethereum, based on Etherscan data, is around 50%, down from about 100% registered in 2021. Meanwhile, the Bitcoin Transactions Per Day as of early November stood above 433,000, a nearly 2X increase from late October.

    Usually, in the case of Bitcoin, considering it is a transactional layer, whenever prices rise, more BTC-related transactions are expected as users hope to increase the emerging trend. 

    Ethereum network utilization chart| Source: Etherscan
    Ethereum network utilization chart| Source: Etherscan

    Whether the UOPS system will be adopted in the long term remains to be seen. However, what’s clear is that the UOPS will consider the number of user operations that the network in question can process every second, all while factoring in the level of complexity of that transaction.

    Out of the UOPS, analysts will instantaneously know how well the blockchain can handle user load without the risk of congestion, as usually is the case in Ethereum when markets are trending higher.

    The Rise Of Ethereum Layer-2s

    At the same time, according to @bkiepuszewski, using UOPS instead of TPS brings clarity considering the widespread use of layer-2 solutions, including OP Mainnet, Base, and StarkNet, which bundles transactions offline before confirming them on the mainnet as a single transfer. The more dapps choose layer-2 solutions, the more flawed blockchain throughput calculation will be if TPS guides. 

    Presently, more developers are opting for layer-2 as their base to avoid scaling issues while accessing the latitude to deploy intensive dapps such as social media platforms, as seen with Friend.tech. According to L2Beat, Arbitrum and OP Mainnet have TVLs of over $6.5 and $2.9 billion, respectively.

    Feature image from Canva, chart from TradingView

    [ad_2]

    Dalmas Ngetich

    Source link

  • Are Ethereum Venture Capitalists Losing Hope In ETH?

    Are Ethereum Venture Capitalists Losing Hope In ETH?

    [ad_1]

    Ethereum venture capitalists (VCs) are “not stupid” and know that investing in the world’s largest smart contract platform won’t result in the “multiples” they desire, according to a crypto user. Going by the handle R89Capital, claims that VCs are now looking at Ethereum layer-2 assets as vehicles to exit the market, dumping “Ponzi tokens.”

    Ethereum VCs Exiting ETH For “Ponzi” Tokens?

    The user opines that the primary reason why ETH prices may not surge in multiples like emerging tokens, including meme coins like PEPE, for instance, is because of the relatively large market cap. 

    According to trackers on October 31, ETH has a market cap of over $215.8 billion and is the second largest after Bitcoin (BTC). Typically, coins with higher market caps are harder to manipulate and usually have found more institutional adoption than emerging tokens. 

    Ethereum price trends to the upside on the daily chart | Source: ETHUSDT on Binance, TradingView

    This is because projects with higher market cap are more liquid, have more name recognition, and have seen more adoption. Even so, while they are easier to buy in the second market due to the higher levels of liquidity, they tend to be less volatile than low market cap tokens. 

    These low-market tokens can also be held for speculative reasons primarily due to their upside potential, especially in trending markets. This means that low-market tokens, regardless of the issuing platform, appeal to profit-seeking speculators, not due to underlying fundamentals.

    R89Capital aligns with this preview to allege that VCs, looking to recoup their investment, are launching Ponzi tokens on general-purpose layer-2 platforms before dumping them for ETH and eventually exiting for USD. 

    In this case, Ponzi tokens, as claimed, are low-market coins that can be meme coins or other well-marketed projects. These tokens have higher upsides, are liquid enough, and can be sold for ETH in layer-2 decentralized exchanges or popular ramps like Binance or Coinbase. 

    The Ethereum Technical Debt: Scaling Remains A Big Issue

    Still, R89Capital didn’t mention which layer-2 projects are “Ponzis” but said the primary reason ETH is capped is due to Ethereum’s technical debt.

    Over the years, Ethereum developers have been launching new products and scaling solutions, of which the transition from a proof-of-work to a proof-of-stake system and adoption of layer-2 solutions stand out. Even so, scaling remains a challenge impacting user experience, especially when token prices begin rallying. 

    It is not unusual for gas fees on Ethereum to spike to double-digits in a bull market, discouraging deployment while catalyzing migration of some transactions to competing platforms like Solana or layer-2 scaling solutions like Base or Optimism.

    Feature image from Canva, chart from TradingView

    [ad_2]

    Dalmas Ngetich

    Source link

  • Blockstream Launches BOL2: Community For Bitcoin Development

    Blockstream Launches BOL2: Community For Bitcoin Development

    [ad_1]

    Blockstream, a company focused on scaling bitcoin, is launching a platform to connect developers, entrepreneurs, and Bitcoiners from around the world to build on Core Lightning and the Liquid Network, per a release sent to Bitcoin Magazine.

    Build On L2 (BOL2) encourages developers to challenge narratives in the broader cryptocurrency space that suggest blockchain projects need to have utility tokens. Developers will focus on solutions furthering Bitcoin’s second layer while building on Core Lightning and the Liquid Network.

    [ad_2]

    Shawn Amick

    Source link