CEX.IO’s Latest Market Analysis Report Reveals How Layer 2 (L2) Solutions Help Refine Bitcoin and Ethereum Functionality
COMPASS: Exploring Emerging Layers Within the Crypto Ecosystem examines how L2 chains are improving efficiency on the Bitcoin and Ethereum networks by fostering innovation and augmenting the user experience
CHICAGO, April 27, 2023 (GLOBE NEWSWIRE) — CEX.IO, a global ecosystem of products and services that connects people and businesses to the cryptocurrency economy and decentralized finance, released its market analysis report for Q1 2023, COMPASS: Exploring Emerging Layers Within the Crypto Ecosystem.
Prepared by CEX.IO’s Market Research Team, the report examines how L2 solutions are augmenting and perfecting the crypto ecosystem’s two most prominent networks: Bitcoin and Ethereum. In both cases, technological innovations that aim to improve network functionality are finding success through the application of new, competitive capabilities. With uncertainties in the U.S. banking system having reinvigorated crypto markets, increased network activity has helped illustrate the possible benefits of such advancements in real time.
“The expansion of crypto’s two flagship ecosystems into generative new directions is reflected in the total value locked (TVL) on these networks,” said Oleksandr Lutskevych, CEX.IO’s Founder and CEO. “The rise of stablecoin usage among Ethereum participants, when paired with the network’s accentuated efficiency, help reveal what balanced tokenomics can resemble in a mature, L2-enabled system.”
The report dissects how L2s such as Arbitrum and Optimism have helped alleviate gas fees, improve transaction times, and drastically reduce congestion on the Ethereum network. Alongside the network’s broader adoption of liquid staking, ETH users encouraged the practice to outpace lending as the more utilized service within the digital asset space. With the Shanghai Update set to enable liquid staking withdrawals now just weeks away, COMPASS unpacks this rising feature and how it stands to reorient the crypto ecosystem.
In its analysis of Bitcoin, The CEX.IO Research Team surveyed the asset’s embrace of L2 solutions, such as Ordinals, in an effort to expand into the NFT market. This process of satoshi inscription creates non-fungible characteristics for storing data such as images and video on fragments of BTC. With novel use-cases waiting to be discovered, entire ecosystems are cropping up in response to these emerging markets. Plus, the report discusses whether Bitcoin’s realignment with gold prices, and away from the S&P 500, suggests an overall sea change in the public perception of crypto.
“While we continue to navigate the uncertainties of the regulatory landscape, the organic evolution of forward-looking projects and the collaboration they foster is a testament to crypto’s ingenuity,” Lutskevych added. “We hope you’ll join us as we explore this next chapter in the ecosystem’s ongoing refinement”
To read CEX.IO’s full Q1 2023 COMPASS report, please visit here.
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CEX.IO was founded in 2013 with a mission to support global financial inclusion through the adoption of cryptocurrency and blockchain technology. As one of the most tenured market participants, CEX.IO offers a comprehensive ecosystem of intuitive solutions built with safety and security at their core, enabling users to trade, store, transfer and earn digital assets. With over six million registered users globally, CEX.IO helps retail, enterprise, and institutional customers seize opportunities in decentralized finance every day. Learn more at CEX.IO or follow us on LinkedIn.
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