Ethereum [ETH]: Investors return to L2 bridges; zKSync, StarkNet addresses swell
- Addresses on layer two protocols without tokens yet increased interaction with projects.
- While StarkNet was planning a token distribution, zkSync remained unsure.
Over the last few months, layer two (L2) protocols on the Ethereum [ETH] blockchain have gained noteworthy recognition. Needless to say, a project like Optimism [OP] sustained being the star among many. It dominated the last quarter of 2022 and also in early 2023.
However, Arbitrum [ARB] has displaced OP from the top spot following its AirDrop distribution, and upcoming token listing on several exchanges. In turn, the hype that has surrounded the Arbitrum project seems to have triggered reactions to interactions with similar protocols.
In preparation for the unknown
According to Nansen, token swaps and ETH bridges on protocols like zkSync and StarkNet tremendously increased last week.
These projects are similar in function to both Arbitrum and Optimism. However, StarkNet and zkSync differ from OP and ARB as the former are not Optimism rollups like the latter group.
Instead, StarkNet and zkSync are zero-knowledge (zk) rollups whose aim is to enable any decentralized Application (dApp) to operate at an unlimited scale.
Information from the blockchain data and research platform showed that about 39,000 addresses bridged $871 million to zkSync within the said period.
The rise in interaction could be attributed to a possible AirDrop that users might get when they launch a token associated with the projects.
However, zkSync has not confirmed that a token would come along with its several upgrades. But it would seem that these addresses are taking no chance if the projects announce a reward.
Building the blocks
Interestingly, zkSync has had quite a number of integrations in March. On-chain data services OKLink launched its explorer on the future-proof zk Ethereum Virtual Machine (zkEVM). Also, immersive gaming project Horizon Land collaborated with the project to build a decentralized metaverse platform.
On the other hand, it seemed that StarkNet will allocate distributed tokens to its users. On 20 March, the StarkNet Foundation tweeted that it was setting up a committee to ensure fair distribution of the ecosystem-powered tokens.
The Provisions Committee is critical to ensuring the fair, decentralized and transparent distribution of the token that will power the Starknet ecosystem.
— Starknet ✨? (@Starknet) March 20, 2023
The project further mentioned that the function of the committee goes beyond AirDrop provision or token launch. In clearing this point, it noted,
“The Ecosystem Onboarding Committee is responsible for empowering and integrating new developers and community members into the Starknet ecosystem.”
Nonetheless, airdrops are no guarantee of the short or long-term performance of assets. Note that other factors like use cases, adoption, and fundamentals also play a role. Although both zkSync and StarkNet seem to have viable use cases, there is no certainty their tokens, if and when launched, might perform like ARB and OP.