Two major trends after the halving: ETH L2 will explode & BTC L2 will take over

Latest news: JPMorgan reports that Ethereum (ETH) may get rid of the securities classification as the pledge share of the liquidity staking protocol LDO decreases, thereby easing concerns about centralization; Layer 2 and Layer 3 solutions are becoming increasingly prominent in the ETH ecosystem, and Petra is upgraded to increase block verification speed.

Dencun’s Pectra drives ETH price and parallel EVM trends after ETH update

Successful ETH Dencun Update

=The next update will be ETH Pectra Update Pectra aims to promote ETH

=Infrastructure, reducing congestion and improving scalability. The Pectra update will facilitate the development of the EVM system, especially the parallel EVM project. The upgrade is expected to help alleviate bottlenecks and expand the use of EVM.

Parallel EVM projects will lead the market in the future:

FANTOM ( $FTM )

- ETH Pectra’s Narrative EVM

=Developers upgrade FVM and start building a strong ecosystem

= Narratives drive growth $FTM - Trading volumes on Dex are impressive, up nearly 10x compared to early 2024. Average monthly users remain at 420k+ Project revenue is also growing very strongly.

- TVL has increased 3x since October 23. Transactions on Dex have also increased dramatically

=Strong cash flow + strong TVL growth

=Creates momentum for ecosystem growth.

- Andre Cronje Restored

= FTM launches Fantom Gas monetization program

=Over 11,000 FTM tokens for incentives

= Attract other projects + users to participate ($STG accounts for more than 80% of the incentive scheme). The project is also about to launch Canonical Stablecoin

=The more stable the pump, the stronger the pump. - The chart is sideways over 650D and is breaking out

= MC is about $2.5B With current potential, it is entirely possible to reach $10B-$20B.

SEI NETWORK ( $SEI)

- This is also one of the layer 1 parallel EVM + L1 built using Cosmos SDK technology.

- Multicoin Capital and Coinbase Ventures are two large funds. The amount of funds raised is about $90 million. The advantages of this project are parallel execution and compatibility with Ethereum.

- SEI V2 parallel EVM launch on devnet completed in 1H 2024

=Will be a combined version of ETH and SOL

= Fast and low cost. - Due to the advantages of low fees and fast speed, the number of transactions on SEI is quite large. TVL ~40M, with more than 100 projects

= SEI mainly promotes NFT, and most of the activities on the ecosystem are occupied by NFT.

- In the Seed round, the fund bought at $0.003, and in the A round, the fund bought at $0.08. In the upward trend, the fund received about 40% of the tokens

=Entry at 0.3$-$0.5 I think is safe enough to hold.

- The chart has already pulled down x10 from the bottom and is currently accumulating to run the next wave

=Narrate that it is possible that the next wave of MM will be more powerful than the previous wave.

MONAD ($MONAD) has not been issued yet

- MONAD is developed by the Jump Trading LLC team and aims to be the fastest, cheapest and most secure EVM Layer 1.

- Dragonfly Capital is the lead investor, with other investors including Placeholder Capital, Lemniscap, Finality Capital and Shima Capital, as well as angel investors including Naval Ravikant, Cobie and Hasu.

Overall, over two rounds of funding, more than 70 investors have invested $19 million in the project. Monad called on Paradigm for its next round of funding, which will contribute $150 million.

- MONAD positions itself above other competitors through high EVM compatibility combined with Parallel Execution, and can reduce gas fees without compromising security.

- Currently, MONAD is perfecting its ecosystem. This is a positive point for projects that are building a complete ecosystem before the mainnet. Defi is a part that Monad is vigorously building.

= Ability to receive cash flow into the ecosystem in the future.

- MONAD aims to be able to process 10,000 TPS, helping users save time by not having to wait for each transaction to be confirmed one by one like other blockchain EVMs.

- Community is also MONAD’s strongest element. Gained 219k followers on Twitter, built networks in countries around the world and organized builder community events.

- Monad revealed preparations for launching the devnet, stating that “devnet 99% loaded.” Although the project announced the launch of the testnet in May 2023, they did not take any action towards launching the devnet until March 2024.

CORNER ( $CANTO)

- CANTO announced the launch of Cyclone Stack, a parallel execution EVM. The stack includes three major upgrades: Callisto, Elara and Kallichore.x upgrade = Officially joins itself to the Paralel EVM chain

- CANTO shows a completely different path from other Layer1s, with zero-gas, free public infrastructure. - In addition, fast transaction speed, security, and low transaction fees are quite outstanding features of Canto compared to other Layer 1 projects. Projects have also begun to gradually invest resources to focus on the construction of the Canto ecosystem, which is expected to explode in the near future.

- Due to the FPI vision, Canto DEX will not charge transaction fees. Therefore, the revenue of Canto Network will be based on transaction fees within the network. It is quite difficult compared to Layer 1 in the market that raises huge funds, but CANTO still has its own customer base and revenue.

- Although Canto’s TVL volume growth is not strong, the native Dapps on the Canto ecosystem have recorded quite positive growth.

Above are a few projects that could lead the trend towards parallel EVMs with the upcoming ETH Pectra update.

Update ETH Pectra, News ETH ETF Beneficiary Tokens:

-Layer1 Parrallel EVM：

$FTM，MONAD，$SIX，$SINGING……

Directly benefiting from the massive funding of the updated ETH Pectra and Layer 1:

$APT，$SUI，$TIA...…

-Layer2：

$OP，$ARB，$STRK，$MANTA，$METIS...

Knowing the information early will be an opportunity to profit and have a better position, rather than waiting for the trend to come and the price to rise, resulting in Fomo + bad positions.

After Dencun, ETH L2 will explode or BTC L2 will take over

Dencun's main influences:

- Before Dencun, L2 must compress L1

=Transactions can only be executed, so it is easy to get stuck, resulting in high gas.

- After the upgrade, L2 no longer needs to be sent to L1 to execute orders, but directly sent to the layer consensus

= Transaction fees are reduced by 30-100 times. = Reducing Gas on L2 can help people without money experience the network

=Benefits users

=It will be easier to create narratives and games in the future.

- Diversify and promote modularity

=L2's position will become increasingly stronger, and L2 Modular will partly benefit from this update.

- Rollups also benefit greatly, as OP Rollups are all large L2, powerful hst, so updates can bring benefits immediately.

As for ZK Rollup, it does not have much onair, but in turn it is more efficient and more secure. At present, OP Rollup is better, but in the long run, ZK Rollup can become Spotlight. - This upgrade will also help $ETH increase network capacity, increase parallel processing capabilities, and improve overall transaction processing capabilities.

In short, the benefits after Dencun are:

=Reduce gas, the main goal is just to pull users into L2

=Create games + narratives to retain users

=Motivation for price increases in the next period and in the long term.

After Dencun, due to the relatively large number of failed transactions, after the system $SOL cools down, it is likely that an L2 pump wave will occur soon.

So can $ETH Layer 2 currently coexist and merge with $BTC Layer 2?

In the next article, I will write a clear narrative about BTC Layer 2 so that you can have an objective view.

标签：BTC ETH THE TWO