ON–209: L2s 🚄

Coverage on Scroll, Starknet, Base, Arbitrum and Mode.

Feb 27, 2024

ON–209: L2s 🚄

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Layer 2s 🚄

① Scroll 📜

📈 Scroll had the fastest growing ecosystem by overall developers in 2023, at 453%

  • Scroll is the community-first, native zkEVM built on Ethereum — designed for scaling without sacrificing security, developer, or user experience. Scroll had the fastest growing ecosystem by overall monthly developers between Q4 of 2022 and 2023, at 453%, over two times the next highest ecosystem. This is due to a combination of the simple DevX (EVM bytecode-compatibility), Scroll's heavy focus on developer education, and significant cross-collaboration with Ethereum Foundation contributors.
Source: Electric Capital Developer Report
  • Scroll has seen a significant rise in returning contract deployers since mainnet launch, jumping from under 5% initially to nearly 25% last month—a 460% surge, signaling robust developer retention. Daily figures provided below for additional granularity.
Source: scrollstats.com
  • Scroll reached an all-time high weekly transaction count of over 1.7 million in mid-February. A confluence of factors contributed, including: new key deployments like Aave, novel growth initiatives, and a broad resurgence of interest in ZK-rollups.
Source: scrollstats.com
  • 💦🔬 Tx-Level Alpha: This is the transaction that executed Scroll's critical bridging cost upgrade on L1. This was Scroll's first protocol upgrade since mainnet, and it significantly improves the cost of bridging funds from Ethereum to Scroll (by an order of 50%). The upgrade consists of several gas optimizations to the bridge and rollup contract, and is hugely important to the Scroll's health and UX, allowing many more users to bridge with far fewer funds.

② Starknet 🐺

📈 $STRK airdrop distribution to over 1 million addresses & its impacts on Starknet chain activity

  • Last week, the $SRTK airdrop was likely the biggest news across all L2s. On Feb. 20th, over 586M $STRK tokens were distributed to +1M addresses. This included Starknet mainnet, Ethereum, & StarkEx users, along with Starknet GitHub contributors. So far, over 50% of eligible addresses have successfully claimed their tokens, demonstrating strong engagement. Notably, Starknet mainnet users have been the most active group, with 95% claiming rate (484k of 508k eligible users).
Source: voyager.online
  • Starknet submitted 187.9 average transactions per block on the airdrop day, which was higher than Ethereum mainnet stats at the same time. Also on Feb. 21, the number of unique active users per day reached to 371.9K, a 90-day record, demonstrating the airdrop’s impact on user activity.
Source: voyager.online
  • There’s been a notable boost in Starknet’s total locked volume since the STRK airdrop. Breaking down the TVL by different tokens, we notice $STRK's significant role token in the recent increase. Currently, with an overall volume of $1.1 billion USD, $STRK is the main asset of Starknet’s TVL.
Source: L2beat.io
  • 💦🔬 Tx-Level Alpha: Besides $STRK's recent hype, The Native Account Abstraction is one of the main Starknet features to look at. For example this random block showcases the power of multicalls, enabled by Native Account Abstractions or Smart Wallets. This functionality allows for the consolidation of multiple actions, like token approval & swapping, into a single transaction. This not only improves user experience but also enhances security by preventing funds from being drained even if a proxy is compromised.

③ Base 🔵

📈 Base transaction count 2x YTD, sequencer profit reaches 5 month highs

Base is an Optimism-powered layer 2 rollup on Ethereum, launched by Coinbase.

Base facilitates ~470k transactions/day - the same level as OP Mainnet. Base tx count has 2x YTD while transacting addresses have increased 40% over the same period. Base briefly overtook Arbitrum on active addresses on February 17th by 14%. A key user growth driver has been the social app Farcaster where 70% of its 201k users have identities on Base.

Source: Dune Analytics - @msilb7
  • Base uses a sequencer to bundle transactions and submits them to the L1. An increase in on-chain usage has driven monthly sequencer profits to 5-month highs with the biggest monthly increase since August 2023. The sequencer maintains a profit margin of ~20%.
Source: Dune Analytics - @niftytable
  • Base has the highest weekly contract deployment count (5.8k) and several addresses deploying contracts (3.9k) against key competitors. Contract deployment count has increased ~50% YTD and reflects a growing interest in launching new applications, tokens, and NFTs within the ecosystem.
Source: Artemis
  • 💦🔬 Tx-Level Alpha: Base is celebrating its first anniversary by launching the 'Blue Dot' NFT on Zora. This tx refers to the contract deployment for the blue dot collection. Since launching, there have been 54k minters generating >30 ETH in creator earnings.

④ Arbitrum 💙,🧡

📈 Arbitrum: the largest L2 Chain for ETH assets with $9.5B worth of native ETH and $364M worth of ETH LSTs

  • Arbitrum One is an L2 scaling solution that offers ultra-fast, low-cost transactions and derives its security from Ethereum through Optimistic Rollup technology. On Arbitrum One, 14.6M wallets have 3.1M ETH ($9.5B) in total. This is more than Optimism, Base and Polygon zkEVM combined – Arbitrum One is home to 55% of the wallets holding ETH in L2s and has a 77% market share for ETH held. At $364M, 38% of the net ETH LSTs that were deposited in L2s is on Arbitrum One. Its ETH LSTs consist of three types: wstETH (84%), cbETH (14%) and rETH (2%).
Source: Allium & Dune Analytics - @arbitrumintern
  • Of the top L2s (Arbitrum, Base, Optimism, zkSync), Arbitrum One has consistently has the most amount of incoming monthly native ETH transfers from centralized exchanges (CEXs). As of February 2024, Arbitrum One had almost four-fifths (78%) of the total native ETH inflow from CEXs.
Source: Dune Analytics - @arbitrumintern
  • Since 2023, $9.3B worth of assets have been bridged into Arbitrum One via the Arbitrum Native bridge on the Arbitrum Portal. This makes the Arbitrum Native Bridge the fourth largest address by ETH held on Ethereum.
Source: Etherscan & Dune Analytics - @datawarlock
  • 💦🔬 Tx-Level Alpha: A feature of ArbOS, this transaction is one of the common precompiles. Its purpose is to manage retryables as part of Arbitrum's canonical method for creating L1 to L2 messages (i.e. L1 transactions that initiate a message to be executed on L2). In this transaction, we can see that ETH is also sent to Arbitrum's L2 Surplus Fee and Arbitrum's L2 Base Fee -- a feature critical to Arbitrum's sustainable economic model for the Arbitrum ecosystem.

⑤ Mode 🟡

📈 Mode Network crosses $110M in TVL with 130k bridging addresses

  • Mode Network is a modular DeFi L2 based on the OP Stack and is part of Superchain. The goal of Mode is to directly reward users and developers for their contribution to the ecosystem through built-in mechanisms such as Sequencer Fee Sharing and user referral fees. Mode Network’s mainnet launched at the end of January and its total value locked (TVL) has recently exceeded $110 million with over 130,000 addresses that bridged to the network.
Source: Dune Analytics - @sealaunch_team
  • Currently Mode Network has daily active addresses ranging between 13k and 20k, and daily transactions ranging between 110k and 170k. Additionally, in the last weeks, between 1.5k and 2k new addresses bridge to the network on a daily basis.
Source: Dune Analytics - @sealaunch_team
  • When comparing Mode's active addresses and transactions with those of other L2s on Superchain (OP Stack), Mode represents approximately the equivalent of 25% of Base's transactions and 33% of Optimism's transactions.
Source: Dune Analytics - @sealaunch_team
  • 💦🔬 Tx-Level Alpha: A single address bridged 689 ETH (~$2M) to Mode on a single transaction. This address is currently the #6 address in terms of net amount bridged.