After the approval of the Ethereum spot ETF, where will the various L2 networks go?

Author: Wenser, Odaily Planet Daily

On May 24, Beijing time, the U.S. Securities and Exchange Commission (SEC) officially approved the 19b-4 application form for the Ethereum spot ETF, marking another milestone event for the cryptocurrency industry. Following the positive news of the Ethereum spot ETF, the focus on Ethereum may shift to the Ethereum L2 networks and the staking and re-staking sectors. Recently, Wrapcast's well-known KOL ciniz released an image ranking L2 networks, and Odaily Planet Daily will briefly outline the current status of various L2 networks in this article.

Reference Opinion: No Conclusion on S-Class Projects, L2 Networks Flourish

Looking at the numerous L2 networks, the current landscape presents a "flourishing" situation, which is why there are opinions in the market suggesting that "L2 networks are a variant of the former ICO boom."

According to the current development status of L2 networks, as shown in the image released by ciniz, there is still no conclusion on S-class projects. Meanwhile, L2 networks including Base, Op, Arb, Blast, as well as Starknet, Scroll, Linea, and zkSync are competing in various aspects such as total user numbers, active user counts, TVL locked amounts, ecological richness, and token price performance. Next, we will introduce the "main players" one by one.

L2 Network Rankings According to ciniz

Base: Backed by Coinbase, a New Star in L2 Networks for 2024

If the explosive popularity of Friend.tech in 2023 only left an impression of the Base ecosystem, entering 2024, the Farcaster social protocol and the Base Memecoin boom following the Solana ecosystem have raised higher expectations for the future development of Base, the "favorite child of Coinbase." Especially after Farcaster announced the completion of a $150 million financing led by Paradigm, with participation from a16z crypto, Haun, USV, Variant, Standard Crypto, and others, the Base network has welcomed another wave of new users.

Current Overview:

Token Issuance: Not yet issued (due to regulatory issues with Coinbase, officials have repeatedly emphasized that the Base network will not issue a native token);

Ecological TVL: $6.62 billion;

Total Users: Approximately 9.4 million according to Dune data.

Popular Projects in the Ecosystem: Friend.tech, Farcaster, Aerodrome, and more projects can be found in the previous article “TVL Surged by $1 Billion in 5 Days, Exploring Wealth Opportunities in Base Ecosystem's Top Projects”.

L2 Beat Data

Optimism: Established L2 Network, Building the "Op Stack Alliance"

As an established L2 network, the ecological development of Op has entered a stable phase, focusing on creating a "superchain ecosystem" and the Op Stack alliance. Base can also be seen as a rising star built on the Op network. Previously, Op's ecological airdrop created wealth for many, and the Op network is also one of the ecological projects that uphold the "orthodoxy" of Ethereum core figures like Vitalik.

Current Overview:

Token Issuance: Issued, currently the token OP price is $2.48, with a market cap of $2.71 billion (according to Coingecko data);

Ecological TVL: $7.39 billion;

Monthly Active Users: Approximately 2.14 million addresses according to Dune data.

Popular Projects in the Ecosystem: Worldcoin, Mirror, Velodrome, etc.

L2 Beat Data

Arbitrum: Established L2 Network, Ranking First in Daily Active Addresses

On May 23, according to a post by Bankless founder David Hoffman, the Arbitrum network had an average of 779,000 daily active addresses, ranking first among L2 networks. The previously popular game The Beacon also brought many users and attention to the Arbitrum network. The previous Arb airdrop and the subsequent explosion of numerous Arbitrum network meme projects provided a lot of "bear market warmth" for many Web3 players, and many still vividly remember the airdrop announcement of Arbitrum.

Current Overview:

Token Issuance: Issued, currently the token ARB price is $1.13, with a market cap of $3.005 billion (according to Coingecko data);

Ecological TVL: $18.57 billion;

Daily Active Users: Approximately 800,000 according to Nansen data.

Popular Projects in the Ecosystem: GMX, Camelot, etc.

L2 Beat Data

Blast: The First Chain for High-Yield Deposits, Airdrop Expectations Become Key

If other L2 networks are following a "steady and steady, building ecology" development route, Blast, as an L2 network backed by the emerging NFT platform Blur, has taken a different "high-yield deposit" wild route, thus kicking off the "L2 network TVL battle." The reason for the market's enthusiasm for a certain period is largely due to the key factor of the Blast and Blur third season airdrop. Currently, Blast has announced that its airdrop event will start on June 26, and Blur's third season will also end on that day and be supported by Blast.

Current Overview:

Token Issuance: Not yet issued;

Ecological TVL: $3.19 billion;

Total Users: Approximately 182,500 according to Dune data.

Popular Projects in the Ecosystem: Juice Finance, Thruster, etc.

L2 Beat Data

Starknet: Once One of the Four Kings of L2, Focusing on Ecological Development

After the token airdrop ended, Starknet, once one of the "four kings of L2 networks," inevitably entered a period of development low. Its on-chain daily active users once dropped to single digits, but community building has not stopped, and related ecological projects are developing vigorously at their own pace. The previous ecological DEX Ekubo's token airdrop also attracted some market attention.

Current Overview:

Token Issuance: Issued, currently the token STRK price is $1.21, with a market cap of $1.38 billion (according to Coingecko data);

Ecological TVL: $1.07 billion;

Bridged Users: Approximately 1.243 million according to Dune data.

Popular Projects in the Ecosystem: Ekubo, zkLend, etc.

L2 Beat Data

Linea: Backed by Consensys, May Welcome a Turning Point

On May 23, according to media reports, Consensys CEO Joe Lubin stated that the company hopes to attract public investment using crypto-native methods and is looking for acquisition opportunities. They are currently collaborating with auditing firm KPMG. He clearly stated that Consensys will choose to go public via blockchain rather than listing on NASDAQ or other stock exchanges. As an L2 network backed by Consensys, Linea may reignite hopes for token issuance. The previous meme project Foxy was also seen as part of ecological construction, and the recent continuous increase in TVL is a significant proof of the ecosystem's development welcoming a turning point.

Current Overview:

Token Issuance: Not yet issued (due to regulatory issues, Linea officials have stated that there are currently no plans for token issuance);

Ecological TVL: $1.07 billion;

Total Users: Approximately 492,000 according to Dune data.

Popular Projects in the Ecosystem: Mendi Finance, Nile Exchange, etc.

L2 Beat Data

Scroll: A Star Player in L2, Procrastinator

On May 17, Scroll points were launched on Whales Market. Combined with Scroll's early user contribution reward system and the official disclosure that "this system calculates based on the Gas fees spent by users and will be used for the official TGE," it has sparked speculation in the market and community that Scroll may have put token issuance on the agenda. As a star player in the L2 network, Scroll has become known as one of the "procrastinator twins" alongside zkSync.

Current Overview:

Token Issuance: Not yet issued;

Ecological TVL: $598 million;

Total Users: Approximately 183,600 according to Dune data.

Popular Projects in the Ecosystem: Tokan Exchange, Pencils Protocol, etc.

L2 Beat Data

zkSync: Years of Construction, Token Issuance Imminent

Previously, insiders revealed that zkSync will start its token airdrop in mid-June, and subsequently, the official zkSync account hinted that the airdrop may not undergo witch scrutiny. This news caused a stir in the market, with many expressing their appreciation. Combined with the recent "witch defense battle" of LayerZero, many people lamented that "the pattern is clearly defined," while others remarked that hard work pays off. After years of construction, zkSync is finally about to issue its token.

Current Overview:

Token Issuance: Not yet issued;

Ecological TVL: $886 million;

Bridged Users: Approximately 2.376 million according to Dune data.

Popular Projects in the Ecosystem: Koi Finance, zkSwap Finance, etc.

L2 Beat Data

Mantle: Evolved from Investment Organization BitDAO

Previously, Mantle's treasury management assets once reached $3.2 billion (mainly composed of BIT, MNT, ETH, USDC, USDT), with initial supporters including well-known investment institutions and individuals such as cryptocurrency exchange Bybit, venture capitalist Peter Thiel, Dragonfly, Pantera Capital, and Polygon. Recently, Mantle also launched the Mantle Scouts grant program, trialing an MNT prize pool of $1 million. Although the ecological landscape is relatively barren, its support for different types of projects is evident. The decentralized credit market Clearpool has issued nearly 10,000 MNT as rewards for liquidity activities on the Mantle network.

Current Overview:

Token Issuance: Issued, currently the token MNT price is $0.99, with a market cap of $3.23 billion (according to Coingecko data);

Ecological TVL: $1.26 billion;

Bridged Users: Approximately 35,000 according to Dune data.

Popular Projects in the Ecosystem: Merchant Moe, ONDO Finance, etc.

L2 Beat Data

Summary: zkSync and Blast Token Issuance May Mark the Second Half of L2 Development

According to L2 Beat website data, the total TVL of L2 networks has reached $45.59 billion. Although it is within a certain range of fluctuation, the increase over the past 7 days has reached 17.98%, still demonstrating the market's high attention and enthusiastic pursuit of L2 networks. With the Ethereum spot ETF approval now a certainty, the next wave of market hotspots and capital flows may be directed towards many L2 networks, including the aforementioned popular ecosystems.

Whether different types of L2 networks can find their ecological niche roles and seize the opportunities brought by the Ethereum spot ETF amid this crisis may be revealed by the performance of zkSync and Blast, which are set to issue tokens in June.

L2 Beat Data