KEYTAKEAWAYS
- Over two-thirds of Bitcoin L2 projects predicted to disappear within three years
- Active addresses on Solana plummet from 18.5 million to 8.4 million
- Libra token scandal: 86% of traders suffer $251 million in losses
CONTENT
OVER TWO-THIRDS OF BITCOIN L2 PROJECTS WILL DISAPPEAR WITHIN THREE YEARS
Muneeb Ali, co-founder of Stacks, believes that as the initial excitement fades, more than two-thirds of existing Bitcoin Layer 2 (L2) projects will no longer exist within three years. Speaking about the Bitcoin L2 ecosystem, Ali mentioned that most projects are beginning to realize that “the market is extremely tough.”
Analysis:
The Bitcoin L2 ecosystem is currently a highly competitive space and still in the early stages of technical development. Many projects have gained short-term market attention, but those with real long-term value are still being explored.
In comparison, the Ethereum L2 ecosystem is much more mature. Solutions like Arbitrum, Optimism, and zkSync have built strong developer communities and ecosystems. Meanwhile, Bitcoin L2 projects still lag in functionality, compatibility, and market scale.
NUMBER OF ACTIVE ADDRESSES ON SOLANA DROPS TO 8.4 MILLION
According to crypto analyst Ali, the number of active addresses on the Solana network has dropped from 18.5 million in November last year to 8.4 million now.
Analysis:
The drop in active addresses on Solana is mainly due to the decline of the meme coin craze, rising SOL prices, and reduced market trading activity. However, Solana remains one of the most active Layer 1 (L1) networks. Its future growth will depend on whether it can find new opportunities, such as in DeFi, stablecoin payments, and GameFi.
86% OF LIBRA TRADERS HAVE LOST AROUND $251 MILLION
The LIBRA token scandal last weekend caused investors to lose hundreds of millions of dollars. On-chain data tracked by Nansen shows that 86% of LIBRA traders lost a total of $251 million, while profitable traders gained only about $180 million.
This means the project can be seen as a “net negative wealth creation” event, potentially draining liquidity from the market. Additionally, Nansen data reveals that between February 16 and 18, 70% of wallets trading LIBRA ended up with losses.
Analysis:
86% of traders lost $251 million, while only a small group of winners gained $180 million.This shows that most of the money did not stay in the market but was taken by a few profit-takers.With 70% of traders losing, the LIBRA token appears to be a zero-sum or even negative-sum game, where most participants simply end up holding the losses.
CoinRank Crypto Digest (2/19)｜Matrixport: Overall market leverage levels remain low
