HTX Weekly (05/30-06/05): Layer 2 Development: Market Data Analysis
1. Last Week’s Wrap-Up
Pioneer Zone New Launch
|Listed Date||Projects||Maximum Gain Since Launch|
2. What to Watch Out for This Week
Launch of OP/USDT Swaps on HTX
Launch of LUNC/USDT Swaps on HTX
Launch of LUNA/USDT Swaps on HTX
80,000 USDT Giveaway for Derivatives Trading Contest
Brand-New Event: Trade WE to Share 40,000 USDT Prize Pool！
Trade GHST and get airdrops: NFTs + NFT game tickets
Brand-New Event: Trade OP to Share 100,000 USDC Prize Pool！
Enjoy Up to 500% APY on BWO with HTX Earn
PrimeEarn High-Yield Tuesday 18th: Team Up to Win 30% APY for USDT/USDC/BTC/ETH
Enjoy Up to 300% APY on OP with HTX Earn
Enjoy Up to 300% APY on WE with HTX Earn
3. Market Movers
|Cryptocurrency||Last Week’s Closing Price (USDT)||Weekly Change (%)|
4. Operating Metrics
|# of launched products||8|
|Futures trading volumes||1.71($billion)|
|Spot trading volumes||21.54($billion)|
|On-chain user balances||1.46($billion)|
Trading Volumes & On-chain Balances Chart
5. HTX Research Institute Analysis
Layer 2 Development: Market Data Analysis
Major exchanges announced numerous OP tokens recently, and zkSync has claimed official tokens that will be issued. It seems Layer 2 is gaining attention again. However, some pointed out that the TVL of Layer 2 has decreased by over 40%, which is far from expectations. In this article, the status quo of Layer 2 will be introduced, and its rationale will be analyzed and presented.
Figure 1: The amount of TVL change for Ethereum and Layer 2
Source：L2beat, HTX Research
The major Layer 2 battlefield surrounds Ethereum — that no major changes will be done to undermine the underlying logic of Ethereum network, which is more feasible than ETH 2.0, yet improves performance by 30 – 100 times. Layer 2 chains primarily serve to provide higher performance at lower costs than the more mature Layer 1 chains, eating into the latter’s market share and revenue.
What can we expect from Layer 2 in this war? Did it function as well as expected? An ideal performance would be that the decreased TVL from Ethereum is equal to the TVL increase in Layer 2. The following chart illustrates the change in f TVL on Ethereum and Layer 2. Two conclusions can be made from the chart: change of TVL on Ethereum is huge, whereas change in Layer 2 is small. First of all, in terms of absolute quantity, Layer 2 is as yet not capable of taking over revenue from Ethereum. Second, change in TVL for the two did not always move in opposite directions, which indicates a weak relationship between the fund flows. As primitive as it is, Layer 2 is too young to overtake Ethereum.
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