June 21, 2024 Grandpa checks in

The "farce" of LayerZero is over. The final operation is to collect an "income tax". Each ZRO received needs to "donate" an additional $0.1, which has pioneered the era of airdrops. No one expected that in addition to the upfront fees, a tax would be required when receiving the reward. In this way, ZRO is equivalent to selling it at a price of 0.1. Unlike the criticism of ZK, the market's dissatisfaction with L0 is silent. According to Dune's data, the number of daily transactions of L0 has fallen rapidly since the beginning of May, and is currently only 12,137, a decrease of 97.56% from the peak in July 2023.

It is worth noting that since the collection of L0 is open to the entire chain, Arbitrum's revenue eventually increased significantly and set a record for the day. There is no doubt that which L2 is the most popular in the market. The market has voted. At least from the perspective of user habits, Arbitrum has become the current L2 leader with its first-mover advantage. Of course, since the price of ARB has been criticized, the market fair price of 1U at most doubled relative to the time of issuance, and due to the large number of institutional holdings, the market is not buying it. However, objectively speaking, from a value perspective, $ARB is much stronger than $ZK , L0, etc., and I will pay more attention to the price of ARB in the future.

As for the market, the market continues to try to push down, and Bitcoin hit a new low at the daily level, currently around 63,000. This is not a good signal for the market. For the entire market, including the cottage industry, Bitcoin's sharp decline is the real test. Once Bitcoin chooses to fall below the big support and goes to 56,000 or even below 50,000 again, the entire market will be bloodbathed again. Of course, this situation will not happen in the short term. Just looking at the decline of Bitcoin, we can see in the figure below that the 5-minute level decline is large in volume, and it may test the 60,000 pressure in the next two days.

For the altcoins, except for many old ones that have fallen to their original lows, the newly issued coins are basically falling. I have said before that you should not touch the high FDV coins this year. Although there may be short-term benefits, the price will definitely fall in the long run as the circulation volume increases. At present, the main and altcoin sectors have entered our field of vision again because the price performance is gradually reflected, including the DeFi sector and the L2 public chain, as well as some coins with good hype. As long as there is logical fundamental support, you can rest assured to buy at the bottom.

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