Huobi Global Weekly (05/30-06/05): Layer 2 Development: Market Data Analysis

1. Last Week’s Wrap-Up

Pioneer Zone New Launch

Listed Date Projects Maximum Gain Since Launch
2022/05/30 BERRY 94%
2022/05/30 BWO 362%
2022/05/30 GHST 64%
2022/05/31 CUSD 57%
2022/06/02 WMT 57%
2022/06/03 WWY 142%
2022/06/03 BP 84%
2022/06/03 EVER 56%

 

2. What to Watch Out for This Week

>Derivatives Trading<

Launch of OP/USDT Swaps on Huobi Global

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Launch of LUNC/USDT Swaps on Huobi Global

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Launch of LUNA/USDT Swaps on Huobi Global

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80,000 USDT Giveaway for Derivatives Trading Contest

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>Spot Trading< 

Brand-New Event: Trade WE to Share 40,000 USDT Prize Pool!

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Trade GHST and get airdrops: NFTs + NFT game tickets

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Brand-New Event: Trade OP to Share 100,000 USDC Prize Pool!

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>Huobi Earn<

Enjoy Up to 500% APY on BWO with Huobi Earn

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PrimeEarn High-Yield Tuesday 18th: Team Up to Win 30% APY for USDT/USDC/BTC/ETH

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Enjoy Up to 300% APY on OP with Huobi Earn

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Enjoy Up to 300% APY on WE with Huobi Earn

Click link for more information

 

3. Market Movers

Cryptocurrency Last Week’s Closing Price (USDT) Weekly Change (%)
we 5.90000000 1080
bwo 0.45240000 277
op 1.43650000 187
get 0.00009555 134
iic 0.00000457 120
waves 8.92370000 106
bhd 0.11170000 92
lith 0.00278100 72
brwl 0.01938500 48
gear 0.02250000 44

 

4. Operating Metrics

Security incidents 0
# of launched products 8
Futures trading volumes  1.71($billion)
Spot trading volumes  21.54($billion)
On-chain user balances  1.46($billion)

Trading Volumes & On-chain Balances Chart

 

5. Huobi Research Institute Analysis

Layer 2 Development: Market Data Analysis

Major exchanges announced numerous OP tokens recently, and zkSync has claimed official tokens that will be issued. It seems Layer 2 is gaining attention again. However, some pointed out that the TVL of Layer 2 has decreased by over 40%, which is far from expectations. In this article, the status quo of Layer 2 will be introduced, and its rationale will be analyzed and presented.

Figure 1: The amount of TVL change for Ethereum and Layer 2  
Source
L2beat, Huobi Research

The major Layer 2 battlefield surrounds Ethereum — that no major changes will be done to undermine the underlying logic of Ethereum network, which is more feasible than ETH 2.0, yet improves performance by 30 – 100 times.  Layer 2 chains primarily serve to provide higher performance at lower costs than the more mature Layer 1 chains, eating into the latter’s market share and revenue.

What can we expect from Layer 2 in this war? Did it function as well as expected? An ideal performance would be that the decreased TVL from Ethereum is equal to the TVL increase in Layer 2. The following chart illustrates the change in f TVL on Ethereum and Layer 2. Two conclusions can be made from the chart: change of TVL on Ethereum is huge, whereas change in Layer 2 is small. First of all, in terms of absolute quantity, Layer 2 is as yet not capable of taking over revenue from Ethereum. Second, change in TVL for the two did not always move in opposite directions, which indicates a weak relationship between the fund flows. As primitive as it is, Layer 2 is too young to overtake Ethereum.

 

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Huobi Global reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and Huobi Global makes no recommendations or guarantees in respect of any digital asset, product, or promotion on Huobi Global. Prices of digital assets are highly volatile and trading digital assets involves risk. Please read our Risk Reminder text here.

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