Layer 2

Grand Base token suffered a $2 million loss in a hacking incident, resulting in a 99% price plummet and significantly undermining community confidence in its security protocols.

Layer 3 networks, as discussed by Vitalik Buterin, offer potential cost-saving benefits but do not inherently enhance throughput. Buterin suggests exploring lighter alternatives to achieve similar cost reductions. The debate around classifying L3 and L2 networks remains open, highlighting the evolving nature of the ecosystem. Polygon CEO Marc Boiron presents contrasting views, sparking discussions within the crypto community. Despite the presence of key players like Orbs and zkSync Hyperchains, the L3 ecosystem remains relatively small. Overall, while L3 networks hold promise, ongoing discussions underscore the complexities and uncertainties surrounding their implementation and impact.

The ongoing debate sparked by Polygon CEO Marc Boiron's assertion that Layer 3 networks diminish Ethereum's value highlights contrasting perspectives within the blockchain community. Boiron contends that consolidating Layer 3 onto Layer 2 risks Ethereum's security and value, while others argue for the unique benefits Layer 3 offers without undermining Ethereum. Technical discussions, concerns about centralization, and the importance of differentiated functionalities add complexity to the discourse. As stakeholders navigate these complexities, the future of Layer 3 networks remains uncertain, with implications for Ethereum's scalability and ecosystem development.

Tron's plan to integrate with Bitcoin's layer 2 proposes significant potential for wrapped USDT to flow into Bitcoin, potentially injecting billions of dollars into the ecosystem. While promising, challenges such as regulatory restrictions and technological complexities loom. Despite this, Tron's initiative signals a broader trend towards enhancing interoperability and liquidity within the Bitcoin network.

Frax Finance unveils ambitious plans to boost the value locked in its ecosystem with the singularity roadmap, targeting $100 billion in assets by 2026. However, FXS cryptocurrency struggles amid market fluctuations, despite recent gains.

Two Ethereum traders have made significant gains using the looping strategy, accumulating nearly $120 million amidst rising crypto prices. This tactic involves leveraging lending protocols to increase exposure to Ether, with the traders opting for a conservative approach to mitigate risks.

In 2023, Ethereum's Layer 2 networks see heightened user engagement and strategic advancements, yet their token values remain incongruent with the sector's overall growth.

Coinbase's layer-2 network, Base, skips native token introduction, aiming for faster, cheaper transactions. CEO Armstrong highlights $500M TVL and industry consolidation for efficient layer-2 adoption, signaling potential shifts.

This surge in network activity resulted in a spike in transaction costs, soaring to over 7,000 Gwei (up from 100 Gwei the previous day) before stabilising around at the lowest point at 400 Gwei, according to Polygonscan.