This week's hot track interpretation - Layer2

TL;DR

Over the past week, the Cryptocurrency market has seen a overall upward trend, with most tracks showing some signs of recovery. However, the overall market has not yet shown [01928374656574839201]. Among the top-ranked projects in various tracks, Layer2 has relatively high heat this week, as measured by the small overall pump amplitude and market ranking in two dimensions.

The overall fluctuation range of the Layer2 track in the past week is 6%, which is a relatively mainstream range among the various mainstream tracks. In the short term, there is still some pump expectation in the overall market. However, the heat of the Layer2 track during the week is more representative. Therefore, this week, we choose to provide a basic overview of the Layer2 track and briefly introduce the popular projects, including popular dApps or token issuance information, and make certain market predictions.

The current Market Cap of Layer1 track is $20.1 billion, with a 24h change rate of 2.4%. The overall market has rebounded during the day.

This article mainly summarizes and introduces the mainstream network projects in the Layer2 track.

Hot Projects

MODE

MODE is a modular Decentralized Finance L2 network built in conjunction with Optimism. Its goal is to provide developers and users with a better and more comprehensive application ecosystem, and to directly receive corresponding rewards based on contributions. MODE has built a new on-chain economic system that allows developers to scale their applications and provide higher returns to users. MODE is compatible with various past EVM chains and supports the rapid deployment of various applications.

The network officially launched TokenTGE in May 2024, and the price of MODEToken was around $0.062 when it went live, subsequently experiencing a continuous decline. As of now, it has been maintained within the price range of $0.02.

MODE's price pump amplitude is 28.7% within this week, which is relatively high in the Layer2 track despite the overall downturn in the current market. The highest price of the coin in the week is near $0.023.

The reason for this trend is that MODE has recently achieved full-chain extension with Optimism, and MODE network assets can now be seamlessly transferred on the Ethereum and OP networks. With the rise of various L2 solutions, achieving full-chain support has become a frequent action for most networks and projects in the near future, and MODE's implementation of this dynamic has significantly supported the token price.

However, it seems that MODE still has a relatively large room for expansion. In addition to the OP network, there are many networks in the L2 track that have a demand for Cross-Chain Interaction, and the corresponding deployment of Cross-Chain Interaction bridges and other dynamics will continue to be important factors affecting the price trend of MODE.

MODE price data

WALV

WALV is the ecosystem Token of Alvey, an L2 DEX project on the Ethereum network. Alvey is a Decentralization L2 blockchain based on the Ethereum Virtual Machine (EVM), with POA, POS, and POB consensus mechanisms. It has a transaction speed of +200k per second. Users can participate in stake, exchange, and other gameplay on Alvey.

The Alvey ecosystem currently supports various forms of use cases such as VR, Metaverse, and also includes dApp projects such as Non-fungible Token and Decentralized Finance. As a well-established L2 network that emerged in 2022, Alvey has integrated mainstream types of applications in the current market. However, the overall trend of its native token WALV since its launch has mainly been a continued decline.

The highest price of WALV in the week was around $0.0073, and the lowest point was around $0.00603. The price fluctuated by about 16.8% in the week, and the current price is around $0.00719. The price of this currency has performed well in the Layer2 track in the past week.

The reason for the rapid short term pump of this project is that the project has been relatively active recently, and Alvery has been performing well in the DeFi field recently. The overall TVL of the network has reached a high level, which has brought a significant impact on the price of WALV.

WALV price data

OP

Optimism is a fast, stable, scalable, and low-cost Layer 2 blockchain for Ethereum (ETH). This means it operates on top of the Ethereum blockchain (Layer 1) to help alleviate congestion, reducing transaction cost and processing time.

As a project that has long been popular in the ETH Layer 2 track, Optimism has had a good pump trend recently with the slight recovery of the L2 track. The price of OPToken has increased by 24.9% in a week, with a high point of $1.77 and is still in a short-term pump cycle, and it is expected to have a certain pump amplitude next week.

OP is the native Token of the Optimism network. Recently, it has also deployed Cross-Chain Interaction to other L2 networks. However, the overall reason for the pump trend is the overall recovery of the Layer2 track.

The currency is likely to continue to experience a rapid pump in the short term, with a high probability of reaching above $2. With the gradual recovery of the market, the overall performance of Layer2 track will also be influenced by the early rise of OP.

OP price data

Post-Market Trend Forecast

In comparison with projects in other fields, the performance of Layer2 track this week overall belongs to a short term pump market conforming to the market rebound, with a moderate increase. Although the overall market has not yet emerged from the current Fluctuation cycle, the overall recovery signal is more obvious. The Layer2 track belongs to a relatively long dynamic this week, so the pump amplitude is relatively good.

This upward cycle is likely to further strengthen as the market warms up, and it is expected that the track will continue to pump in the coming months.

Hot Trends

TRUMP saw a rapid pump in intraday trading this week, as former US President Trump was shot and killed, triggering reactions from society, including the encryption market.

As a long-standing representative theme MEME token of the Trump theme, TRUMP has experienced a significant pump trend in the short term due to this event, with a weekly increase of 24.3% and a high price of $9.51.

This week, the overall market situation of encryption is affected by the overall market cycle and news factors, and there has been a certain recovery trend, but the overall market situation has not shown a significant pump trend. As one of the Consensus tracks in the current market, Layer2 has shown a more obvious upward trend, and it is expected to continue to rise further in the short term with the recovery of the overall market.

Author: Charles T. This article represents only the author's point of view and does not constitute any trading advice. This article is original content, and the copyright belongs to Gate.io. If you need to reprint, please indicate the author and source, otherwise legal responsibility will be pursued.