⚠️#layer2 is the hottest trend in the crypto market in 2024?

😢😢

According to statistical platforms, Layer 2 is the project group with the lowest profitability as of 2024.

Specifically, at the end of the first quarter, Layer 2 only achieved an average increase of 39.5%, far behind memecoin (1,313%), RWA (286%) and AI (222%). Layer2 even loses to #GameFi .

By the end of the second quarter, the performance of Layer2 tokens was even worse when BTC performed poorly. Layer2 is the only trend with NEGATIVE GROWTH (-40.59%) in the first 6 months of 2024.

👉The cause of this situation may be because the first - second quarter of 2024 is the time when the "old" Layer2 unlocks a large amount of tokens for Teams, Investors and Seed - Strategic Rounds.

For example, since the end of March, there have been 500 million more $ARB tokens unlocked, which with $OP is 400 million tokens.

👉With 'new' Layer2 projects like $STRK and $ZK => this group has the advantage of technology stories, but is not yet active, the ecosystem is poor compared to the Optimistic Rollups group.

In addition, the projects are also entangled in a series of controversies related to the airdop program, causing dissatisfaction in the community.

👉Another point that could be the reason for Layer2's poor growth is tokenomics. Similar to many new projects listed on Binance in 2024, Layer2 often has a fairly large capitalization at the time of TGE, with a small amount of tokens in circulation (less than 20%), thereby pushing FDV valuation to huge levels.

=> This tokenomic design is beneficial for developers and investors, but disadvantages retailers.

👉In addition to the above points, in my opinion, the final reason why#Layer2has not increased the price is that the technology story is too good, you buy too much, MM hasn't collected enough goods, so you have to continue to lower the price😆