The State of Layer-2s
The State of Layer-2s
PLUS: Global liquidity is expanding again
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In today's newsletter:
💡 The State of Layer-2s
📣 Visa is launching a tokenized asset platform for banks
📈 Global liquidity is expanding again
Let’s dive in!
💡 Insight
The State of Layer-2s
Layer-2 networks are secondary frameworks built atop the main blockchain (Layer-1) to enhance its scalability and transaction speed.
These networks handle transactions off the main chain, reducing the load and increasing efficiency.
As crypto usage expands, L2 networks will likely play an increasingly vital role in the ecosystem.
According to CoinGecko, the Layer 2 (L2) market cap today is $21.3 Billion, ~1% of the total crypto market cap.
Here are the top Layer 2 solutions sorted by MC/TVL Ratio:
Key Takeaways:
Arbitrum ($ARB) is the most undervalued L2 in terms of MC/TVL Ratio
Mantle ($MNT) is the fastest-growing protocol by Total Value Locked
Arbitrum ($ARB) accounts for more than 50% of the Layer 2s Total Valued Locked
🚀 Take Action
Every month we share the best blockchains to buy based on our value investing framework which aggregates fundamental metrics & value capture metrics discounted by the market multiples.
→ Value Investing Ratings - September 24
📣 News
Visa is launching a tokenized asset platform for banks
Visa’s Tokenized Asset Platform (VTAP) will allow banks to issue fiat-backed tokens powered by smart contracts, enabling faster settlement and digitized transactions for real-world assets like bonds and commodities.
📈 Signal
Global liquidity is expanding again
Global liquidity is on the rise again, signaling a potential shift in the financial landscape.
Central banks are loosening their purse strings, injecting fresh capital into markets worldwide. For crypto investors, this could be the tailwind we've been waiting for.
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