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Sony's Ethereum Layer 2 Project Enlists Ava Protocol to Empower Creators

Oct 02, 2024

Sony's Ethereum Layer-2 blockchain, Soneium, has partnered with Ava Protocol, an event-driven EigenLayer Active Validated Service. The collaboration aims to support developers and creators. The partnership seeks to simplify users' experience on Soneium. It will bring automation to Sony's blockchain as Ava Protocol will execute transactions and smart contracts based on predefined conditions. The collaboration is part of the Soneium Spark incubation program and it will provide participants with an efficient, trustless automation solution. Creators will be able to tokenize Real-World Assets. This opens up new possibilities for fractional ownership and distribution methods. Ava Protocol is the first automation provider on Soneium, aiming to create opportunities for monetizing various assets. These include art, intellectual property, and physical goods. The protocol will also support recurring payments and other financial operations. Sam Shev, Head of Marketing at Ava Protocol, commented on the partnership. "Soneium is fostering an open internet that transcends boundaries," he said. "Ava Protocol's powerful automation tools will streamline processes and reduce barriers to entry." Chris Li, founder of Ava Protocol, emphasized the project's goal. "Ava Protocol is incredibly excited to join forces with Soneium," he stated. "Our technology provides creators and developers with the tools they need to be truly empowered." Sony's public Ethereum L2 blockchain is part of the company's strategic expansion. It aims to bring Web3 technologies to mainstream adoption with a help of a versatile, general-purpose blockchain. The platform seeks to integrate Web3 into daily applications. It aims to serve multiple needs across different industries globally. Soneium also wants to create a robust, developer-friendly environment. Sota Watanabe, Director of Sony Block Solutions Labs, noted the industry's transformation. He stated that the decisive moment will be whether Web3 companies can provide solutions for billions of users, because the goal is to make Web3 mainstream in the coming years. The partnership between Soneium and Ava Protocol represents a significant step in this direction. It combines Sony's distribution network with Ava Protocol's automation capabilities. This collaboration could potentially accelerate the adoption of Web3 technologies across various sectors.

Coinbase's Layer 2 Gambit Pays Off, Leaving Many Tech-First Rivals in the Dust

Sep 10, 2024

Base, Coinbase's layer-2 blockchain, has become the second-largest L2 network. It's a surprising twist. Base isn't exactly cutting-edge tech. The project launched last year using borrowed code - it's built on Optimism's OP Stack framework. Yet Base now holds an 18% market share among 74 active L2 networks. Only Arbitrum One beats it, with a 40% share. Base has leapfrogged over established players like Starknet, Polygon, and even Optimism itself. L2 networks aim to make Ethereum faster and cheaper. They bundle transactions and settle them on the main chain. It's a bit like filing records at the county clerk's office. But here's the kicker: marketing prowess trumps tech chops in the blockchain race. Coinbase's deep pockets and promo events have fueled Base's growth. Take their recent "Onchain Summer" campaign. It drew over 2 million unique wallets, and creators pocketed more than $5 million in mint revenue. "The results really blew us away," a Coinbase spokesperson gushed. Participation was 8x higher than last year, doubling internal expectations. Blockchain data backs this up. Token Terminal shows Base accelerating while other L2s slow down. Coinbase's not shy about splashing cash. They spent $165 million on marketing in Q2 2023 alone. That's double the previous year's figure. Base is raking it in, too. In Q1 2024, Coinbase reported $52.5 million in "other" transaction revenues, including Base's sequencer fees. But is it all smoke and mirrors? Are these real users or just crypto tire-kickers? Some reckon it's down to memecoins and easy onboarding from Coinbase. Rob Hadick of Dragonfly VC notes Base's popularity for swapping "longer-tail assets". But a closer look shows lots of memecoin action. That's notoriously fickle. Coinbase's smart contract wallet makes it a breeze to move tokens over. No seed phrases, no hassle. It's a game-changer for curious newbies. Oskari Tempakka from Token Terminal credits the Coinbase-Optimism combo. A U.S.-listed exchange plus Optimism's tech smarts? It's a potent mix. Base's rise shows that in crypto, as in life, it's not just what you know. It's who you know – and how well you can sell it.

Ethereum's Layer-1 Revenue Nosedives as Layer-2 Solutions Soar

Sep 05, 2024

Ethereum's layer-1 network has taken a beating. Revenue has plummeted by 99% since March 2024. The Dencun upgrade is the culprit. Layer-2 solutions are thriving. They're attracting more users and offering lower fees. Token Terminal data confirms this trend. The Dencun upgrade went live on March 13. It optimized layer-2 transactions. Days before, Ethereum's layer-1 revenue topped $35 million. Then fees began to nosedive. By August's end, revenue hit rock bottom at $600,000. This shift reveals changing user behavior in the Ethereum ecosystem. "Blobs" are the game-changer. They allow layer-2 solutions to process transactions with less reliance on layer-1. The result? Dirt-cheap transactions. Layer-1 revenue has fallen off a cliff. But it's not all doom and gloom. Layer-2 projects are popping up like mushrooms. There are now 74 solutions duking it out. It's a race to the bottom for transaction fees. Users are laughing all the way to the bank. They're saving a bundle on faster transactions. Some validators reckon the fee focus is off-base. Ryan Berckmans, a big-shot validator, argues layer-2 success makes Ethereum more accessible. He quips, "Fees are a result of Ethereum being useful, not the goal in itself." The community's split on this one. Some worry about long-term consequences. The reduced ETH burn rate has flipped the supply from deflationary to inflationary. This raises eyebrows about ETH's future value. Some reckon blob fee tweaks might be needed to rebalance the scales. Despite the hubbub, institutional interest is picking up. Coinbase, Circle, and even BlackRock are backing Ethereum. They're building infrastructure for the long haul. Ethereum fanboy Adriano Feria reckons this institutional support is the real deal. He says speculation might bring a flash in the pan, but it's the big players that'll drive real progress. Feria's bullish on layer-2 solutions. He sees them unlocking new possibilities and jazzing up the user experience. Giants like Coinbase's Base and Arbitrum are tapping into Ethereum's liquidity. They're proving layer-2 can coexist and thrive alongside layer-1. The layer-2 boom is hitting Ethereum's layer-1 revenue hard. But it's opening a new chapter for the network. The Dencun upgrade has reshaped the landscape, making transactions cheaper and more accessible. With institutional interest brewing and users flocking to layer-2 solutions, Ethereum might be on the cusp of its next evolution. It's a bumpy ride, but the destination could be worth it.

Bitcoin's Layer-2 Solution Stacks Kicks Off Nakamoto Upgrade

Aug 29, 2024

Stacks, a Layer-2 network built on Bitcoin, has started its Nakamoto upgrade. It's a big deal for Bitcoin fans. The leading crypto lags behind some of its rivals in terms of Layer-2 adoption. The upgrade aims to speed up transactions and enable smart contracts on the world's largest cryptocurrency network. Named after Bitcoin's mysterious creator, the Nakamoto upgrade is shaking things up. It's decoupling Stacks' block production from Bitcoin's schedule. This could be a game-changer for the network's efficiency. Network operators have a two-week window to implement the upgrade. After that, a hard fork will seal the deal. The upgrade introduces a new block production method using a proof-of-transfer consensus algorithm. Here's how it works: users burn bitcoin to mine Stacks blocks and get rewards. It's like killing two birds with one stone. The implementation kicked off in April, with block "signers" coming online to validate transaction "tenures". What are tenures, you ask? They're periods when miners are assigned to produce multiple blocks. These blocks eventually settle on Bitcoin. It's a clever way to boost efficiency. Stacks isn't just about speed, though. Its main goal is to bring more utility to Bitcoin. We're talking smart contracts and other DeFi functions using Bitcoin as a base layer. That's pretty exciting stuff for crypto enthusiasts. As part of this grand plan, Stacks is rolling out sBTC. It's a bridging asset that lets users move their BTC into the Stacks ecosystem. This could open up a whole new world of possibilities for Bitcoin holders. But it's not all sunshine and rainbows in the crypto world. STX, the token that fuels the Stacks network and rewards miners, has taken a hit. It's down over 8% in the last 24 hours. Ouch. To be fair, the broader digital asset market isn't doing great either. The CoinDesk 20 Index has dropped nearly 4%. It's been a rough day for crypto across the board. Now, let's dive a bit deeper into Bitcoin Layer 2 solutions like Stacks. These networks are built on top of the main Bitcoin blockchain. They aim to solve some of Bitcoin's limitations, like slow transaction speeds and limited smart contract capabilities. Layer 2 solutions can process transactions off the main chain, then settle them in batches on the Bitcoin blockchain. This approach can significantly increase transaction throughput and reduce fees. It's like adding an express lane to a crowded highway. Some other popular Bitcoin Layer 2 solutions include the Lightning Network and RSK. Each has its own approach to scaling Bitcoin and adding functionality. But Stacks' Nakamoto upgrade could give it an edge in this competitive space. These Layer 2 solutions could play a crucial role in Bitcoin's future. They might just be the key to making Bitcoin more than just a store of value. Ethereum has the egde in terms of Layer-2 solutions now, but Bitcoin fans would love to see this situation changing. With upgrades like Nakamoto, we might see Bitcoin become a more versatile platform for decentralized applications and finance.

Ethereum L2 Ecosystem Processes Record 12.4M Transactions in a Day, Thanks to Meme Coin Mania

Aug 16, 2024

Ethereum's layer-2 scaling ecosystem has hit a new milestone. Daily transactions reached a record 12.42 million on August 12. This data comes from Growthepie, an Ethereum layer-2 block space analytics platform. Leon Waidmann, head of research at the Onchain Foundation, chimed in on X. He reckons "scalability is improving rapidly" and "user activity is at its peak." No kidding. The numbers are pretty impressive. Since the start of 2024, daily transactions have shot up by 140%. That's not small potatoes. Growthepie's counting method is worth noting. They only include transactions from users or smart contracts. System transactions don't make the cut. So what's driving this growth? Look no further than Base, Coinbase's L2 blockchain. It's been on fire lately. In late July, transactions on Base peaked at over 4 million. Basescan, a metrics platform for Base, backs this up. They're reporting a whopping 700% increase in daily transactions over the past six months. That's bonkers. Earlier this year, Cointelegraph pointed to memecoin mania as the culprit. Token minters are flocking to Base for its lower costs and higher throughput. L2beat, another industry metrics platform, has some interesting insights. Overall throughput is up, with average TPS doubling in just two months. More scaling platforms are popping up too. Growthepie dropped another bombshell. Layer-2 networks now host more stablecoins than Solana and Binance Chain combined. We're talking 150% more than Solana and 94% more than BNB Smart Chain. Meanwhile, Ethereum's layer-1 is chugging along steadily. Daily transactions have hovered around 1.1 million for most of this year, according to Etherscan. But here's a kicker: average gas fees on L1 Ethereum have hit yearly lows. Tether, the stablecoin issuer, minted 1 billion Tether for just 53 cents on August 13. Arkham, a blockchain intelligence platform, confirmed this.

Top 10 Ethereum Layer 2 Projects to Watch in 2024

Pepe

Jul 18, 2024

The crypto bull market is back, and Ethereum's gas fees are through the roof again. But don't panic just yet. A bunch of clever folks have been busy cooking up faster, cheaper Layer 2 (L2) networks to save the day. Let's take a look at the hottest Ethereum L2 projects of 2024, ranked by experts, based on their tech, tokenomics, and why they might be worth your attention. 1. Pepe Unchained (PEPU) - The Meme Coin That Grew Up Remember Pepe? Well, he's back and he means business. Pepe Unchained isn't just another meme coin. It's a full-blown L2 network built on top of Ethereum. What's the deal? Faster transactions and lower fees than ETH. Plus, you can stake your PEPU tokens for some juicy rewards. The current APR is sitting at a whopping 1,200% per year. Not too shabby. The project's presale is already underway, and they've raised over $1.8 million so far. Looks like people are hungry for more Pepe action. 2. Arbitrum (ARB) - The Gas Fee Slayer If you're sick of paying an arm and a leg for Ethereum transactions, Arbitrum might be your new best friend. It uses some fancy "optimistic rollup" tech to bundle transactions and cut costs. Arbitrum's ecosystem includes Arbitrum One and Arbitrum Nova. Both use the Arbitrum Nitro stack for better performance. With over $2.97 billion locked in their smart contracts, they're not messing around. The ARB token lets users vote on network upgrades. It's like a crypto democracy, but with less shouting and more code. Something our politicians could learn a lot from, innit? 3. Polygon (MATIC) - The Swiss Army Knife of Scaling Polygon is like the multi-tool of Ethereum scaling. It's got a solution for everything: Polygon PoS for faster, cheaper transactions zkEVM for Ethereum-compatible rollups Polygon ID for blockchain identity stuff AggLayer for cross-chain shenanigans Their new Polygon 2.0 upgrade introduces POL, a token that works across multiple chains. They're calling it "hyperproductive." Sounds intense. And yet, that might be just the future of the crypto market. Many of us are tired of the whole 'zoo' of different chains that are incompatibe, and swapping tokens might be as complicated as the conversation of a japanese monk and Texas farmer without an interpreter. With a market cap of $7.40 billion, Polygon is a big player in the L2 game. 4. Optimism (OP) - The Developer's Best Friend Optimism is all about making life easier for Ethereum developers. Their secret sauce? EVM equivalence. It means you can copy-paste your Ethereum smart contracts and they'll just work. Like Arbitrum, Optimism uses optimistic rollups to scale. They process transactions off-chain and only record the results on Ethereum. It's like outsourcing your math homework but still getting the credit. The OP token is used for governance and network incentives. Their roadmap looks solid, with plans to keep improving performance and expanding their ecosystem. 5. Blast (BLAST) - The Yield Machine Blast is doing something different in the L2 space. They're all about generating yield on your crypto holdings. You can earn passive income on ETH and stablecoins without jumping through hoops. They use optimistic rollups like some of the others, but with a twist. Their auto-rebasing feature for ETH and USDB makes earning yield a breeze. Blast also shares gas revenue with dApp developers. It's like a "thank you" note, but with actual money. They hit $500 million in Total Value Locked (TVL) pretty quickly after launch. Not too shabby for the new kid on the block. 6. Loopring (LRC) - The DEX Builder's Dream Loopring is all about decentralized exchanges (DEXs). Their claim to fame? Order rings. It's a fancy way of matching multiple orders to squeeze out more liquidity. They use zero-knowledge rollups to keep things speedy and secure. Transactions happen off-chain, but they're settled on Ethereum. It's like having your cake and eating it too. The LRC token is used for staking, governance, and earning a slice of those sweet protocol fees. If you're into DEXs, Loopring is worth keeping an eye on. 7. Eclipse - The Speed Demon Eclipse is gunning for the title of fastest L2 in town. They're using the Solana Virtual Machine (SVM) for execution, which is like strapping a rocket to your transactions. But don't worry, they're not sacrificing security. Eclipse still settles on Ethereum, using a validating bridge to keep everything kosher. One cool thing about Eclipse? They're not planning to launch their own token. They'll just use ETH for gas fees. It's a bold move in a space where everyone and their dog has a token. 8. Mantle (MNT) - The People's L2 Mantle is waving the flag of decentralization. It's governed by a DAO, which means MNT token holders call the shots. It's like a crypto co-op. Their architecture is modular, separating transaction execution, data availability, and finality. It's a bit like building with Legos, but for blockchain nerds. Mantle uses optimistic rollups for scaling and something called EigenDA for decentralized data availability. They're also throwing money at developers through their EcoFund and Grants Program. It's like seed funding, but for the Web3 crowd. 9. Immutable X (IMX) - The NFT Paradise If you're into NFTs or blockchain gaming, Immutable X is your jam. They offer gas-free minting and trading, which is music to the ears of broke artists everywhere. Using StarkWare's ZK-Rollup tech, Immutable X can handle a ton of NFT transactions without breaking a sweat. They're also carbon-neutral, so you can trade your JPEGs with a clear conscience. Their API-driven approach makes it easy for developers to jump in without a Ph.D. in blockchain. The IMX token is used for staking, governance, and fees. They've got some big-name games on board like Gods Unchained and Illuvium. It's like the Steam of Web3 gaming. 10. dYdX (DYDX) - The Trader's Playground dYdX is where the cool kids go for decentralized perpetual trading. They handle orders off-chain but settle on-chain, which means you can trade fast without getting gouged on gas fees. They offer up to 20x leverage, so you can either make it big or lose your shirt in style. It's non-custodial, which means you keep control of your assets. No "not your keys, not your coins" drama here. The DYDX token lets users vote on protocol upgrades. They're also moving to their own chain built on Cosmos SDK. It's like they're growing up and moving out of Ethereum's basement.

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