DeFi & L1L2 Weekly – 📈 Ethereum L2 Transactions Hit Record Highs, Resulting in Fees to Drop

Ethereum L2 transactions hit record highs, resulting in transaction fees to drop. Optimism to introduce Layer-3 applications to the Superchain. Cosmos-based Osmosis is launching a Bitcoin L2.

May 14, 2024
Crypto.com DeFi Weekly

Weekly DeFi Index

This week’s market capitalisation, volume, and volatility indices were negative at -5.87%, -9.78%, and -75.71% respectively.

Screenshot 2024 05 14 At 3.47.05 pm

Chart of the Week

Ethereum Layer-2s (L2s) surged to new all-time highs, as more activity and an increasing number of transactions are being settled on L2s. L2 transactions represent about 87% of total transactions on the Ethereum network, compared to 77% before the Dencun upgrade. The number of distinct addresses interacting with L2s has also reached 5.5 million –  more than double the number on the Ethereum mainnet.

The ongoing heightened activity on L2s could be attributed to the completion of the Dencun upgrade, which significantly reduced the fees for L2s and, in turn, attracted more users to L2 rollups and sidechains. Meanwhile, the lowered transactions drove the drop in transaction fees on Ethereum, as the average transaction fee hit a record low of US$1.712 as of 12 May.

Image 11

Screenshot 2024 05 14 At 3.49.06 pm
  • GMX is proposing to bring the decentralised derivatives trading platform GMX v2 to Solana via the launch of GMSOL. GMSOL will operate as an independent project while closely working with GMX, and all value measurements and storage will exclusively utilise the GMX token.

Screenshot 2024 05 14 At 3.50.37 pm

Screenshot 2024 05 14 At 3.51.20 pm

News Highlights

  • Optimism is expanding its blockchain capabilities by introducing Layer-3 (L3) applications on the Superchain. The Superchain, powered by the OP Stack, aims to enhance developer accessibility by providing L3 features and functionality.
  • MakerDAO unveils plans to introduce two new tokens to its ecosystem, under the codenames ‘NewStable’ (NST) and ‘NewGovToken’ (NGT). NST will be the upgraded version of DAI, and NGT will replace MKR with a denomination of 24,000 NGT per MKR.
  • Cosmos-based DeFi hub Osmosis is launching a Bitcoin L2. Osmosis is set to roll out ‘Alloyed Bitcoin’, a product consisting of a basket of variants of BTC from throughout the ecosystem.
  • The Runes protocol experienced a significant decline in activity following its initial surge, with a notable decrease in new mints and wallet interactions by 10 May. The protocol’s fee revenue has steadily declined, despite earning hundreds of thousands of dollars daily in fees. 
  • L3 blockchain Degen Chainexperienced a significant outage as the network stopped at block #15524774 and has not produced a block for 12 hours. The incident has rendered various applications to be inoperable and raised concerns about the stability of the platform, highlighting potential issues with its operational reliability.

Recent Research Reports


Recent University Articles


We’re all ears.

Your feedback has always helped us provide insightful crypto market trends. Tell us how we can improve this newsletter further by taking a quick survey below (it will only take less than a minute). Thank you!


Author

Research and Insights Team

Disclaimer

The information in this report is provided as general market commentary by Crypto.com and its affiliates, and does not constitute any financial, investment, legal, tax, or any other advice. This report is not intended to offer or recommend any access to products and/or services. While we endeavour to publish and maintain accurate information, we do not guarantee the accuracy, completeness, or usefulness of any information in this report, nor do we adopt nor endorse, nor are we responsible for, the accuracy or reliability of any information submitted by other parties.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of, or located in a jurisdiction, where such distribution or use would be contrary to applicable law or that would subject Crypto.com and/or its affiliates to any registration or licensing requirement.

The brands and the logos appearing in this report are registered trademarks of their respective owners.

Tags

cryptocurrencies

DeFi

layer 1

layer 2

Share with Friends

Ready to start your crypto journey?

Get your step-by-step guide to setting up an account with Crypto.com

By clicking the Get Started button you acknowledge having read the Privacy Notice of Crypto.com where we explain how we use and protect your personal data.
Mobile phone screen displaying total balance with Crypto.com App

Common Keywords: 

Ethereum / Dogecoin / Dapp / Tokens