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- 1 “Honestly, I’m about 3x less confident in the simplified L1 even at the expense of a more complicated L2 concept than I was five years ago,” says Vitalik Buterin.
- 2 Ethereum is one of the largest blockchains and over 100 projects are using this blockchain.
- 3 Overall crypto market capitalization is giving a pleasant signal. In the past 30 days, the market cap surged over 10%.
Vitalik Buterin, the co-founder of Ethereum, shared his concern over Layer 2 scaling solutions. He wrote on his ‘X’ on February 22 about the potential risks linked with the complicated Layer 2 network.
Buterin argued for a more balanced approach to developing the blockchain ecosystem. There is a belief in the crypto market that the more protected the L1, the lesser the risk in the future. However, major complex features fall upon Layer 2, which is designed to increase stability.
While replying to Salvatore Ingala, Buterin wrote, “Honestly, I’m about 3x less confident in the simplified L1 even at the expense of a more complicated L2 concept than I was five years ago. The challenge is that when you can trade off between L1 bug risk and L2 bug risk, it’s unclear whether the latter is better!”
The post adds, “If you have an L1 consensus failure, stuff breaks core devs scramble for a day, but eventually things are alright again. With an L2 bug, people could permanently lose lots of money.”
Over 100 projects have been built on the Ethereum blockchain. Presently, total value locked (TVL) in decentralized finance stands at around $98.29 Billion, data from DefiLlama shows.
In the past few months, Ethereum has grown significantly amid claims that the Ether spot ETF might secure regulatory approval from the US Securities and Exchange Commission (SEC).
Market Price Update
The crypto market capitalization has been flourishing constantly; in the past 30 days, the cap has surged over 10%. Earlier on, it crossed the much-awaited milestone of $2 Trillion, but as of writing, the market cap has slipped down and was $1.97 Trillion.
Bitcoin, the market pioneer, has achieved several milestones in the past few weeks; earlier, it crossed $45k; next, it crossed $50k; most recently, it traded above $52k. Since the beginning of 2024, the crypto market has experienced many skyrocketing moves, and in the ongoing year, only significant losses are seen in writing.
The intraday gainers list is led by SigularityNET(AGIX) which surged more than 30%, Worldcoin (WLD) 28.32%, JasmyCoin (JASMY) 18.59%, render (RNDR) 16.13%, The Graph (GRT) 16.10 and Axelar (AXL) 10.41%.
Arweave (AR) lost over 6% and became the topper of the 24-hour loser list, followed by Stacks (STX) at 4.74%, UNUS SED LEO (LEO) at 4.11%, Kaspa (KAS) at 3.36%, Sei (SEI) 2.55% and Dimension (DYM) 2.23%. Most gainers and losers of the market are the tokens/coins priced below $20. Some of them are meme coins.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
