More Layers on Ethereum
Hey, friend!
The 19th edition of Gems Corner features updates on the rise of L3 networks, ETFs, and other solid alphas.
Enjoy the gems.
The Rise of Layer-3 Scaling Networks
You’ve probably heard of Layer-1 and Layer-2 solutions and their functionalities. But what the heck is Layer-3 (L3) networks?
An L3 is an extra layer built on top of a blockchain network’s Layer 2 to provide additional customization and scalability for decentralized applications. Just as L2s leverage on L1s, L3s leverage security and other core functionalities from L2s.
Although a striking difference between L2s and L3s is that, whereas L2s are used as a generic-purpose scaling solution, L3s are special-purpose scaling solutions. That means L3s are perfect for tailored customization.
Recently, we are beginning to see notable L2s launch their L3s.
Optimism - OP Stack
Arbitrum - Arbitrum Orbit
zkSync - ZK Stack
Ethereum is becoming exciting again. L3s will unlock a new generation of dApps with novel use cases with scalable infrastructure and security.
Fidelity Joins the ETF Race
Last week, I gave you an intro on spot Bitcoin and the recent filings. This week, Fidelity, the world’s third-largest asset manager files for a Spot Bitcoin ETF. I have bullish vibes over this ETF stuff. Here’s why:
Two of the largest asset managers have filed for spot Bitcoin ETF, and there’s a high likelihood that Vanguard Group and others will join the race soon. Secondly, there are chances that once SEC approves one, it’ll likely approve others.
Upon approval, it will trigger mass adoption of crypto-related assets like we’ve never seen before. Not just that, it will also trigger the bull market earlier than anticipated because there’ll be a huge money flow in crypto.
Chart of the Day
Despite the market sentiments, BNB Chain remains a clear leader in growth in daily transactions on L2s. The interesting thing to look at in the chart is Arbitrum flipping Ethereum in transaction volume.
Arbitrum has been growing steadily since its Airdrop in March. Seems like their airdrop paid off after all.
Actionable Strikes
Maverick Retroactive Airdrop is Live - link
FTX Debtor’s Customer Claims Portal will be live soon - link
LayerZero interactions for airdrop - link
Project Updates, News & Gems
Vela Exchange is Live - link
HSBC Hong Kong now lets customers trade bitcoin and ether ETFs - link
Global Survey on Crypto and Web3 - link
Syndr launches the 1st Layer 3 Decentralized Exchanges - link
MicroStrategy acquires additional 12,333 BTC - link
Thanks for reading!
Until next Friday,
Viktor DeFi.
PS: I’d love to hear your feedback and comments.