Layer-2 Networks Thrive Amidst Crypto Market Turmoil, Reveals Santiment Report

May 6, 2024 BACK TO NEWS

In the wake of April's turbulent cryptocurrency market, layer-2 networks have emerged as beacons of resilience, boasting significant developer activity despite the broader downturn in native token values. A recent analysis by crypto data analytics platform Santiment sheds light on the robust commitment to innovation within these projects, even amidst market volatility.

According to Santiment's findings, which evaluated the top ten layer-2 networks based on their GitHub activity over the past 30 days, Ethereum-based scaling solution Optimism secured the top spot with an impressive developer activity of 541.33 commits. This surge in activity, indicative of ongoing protocol enhancements and innovations, contrasts sharply with the native token, OP's, decline of over 17% during the same period.

Following closely behind is Starknet, a permissionless decentralized zero knowledge-rollup network, with a developer activity of 220.23. Despite Starknet's strong commitment to development, its native token, STRK, experienced a significant loss of roughly 36% in April.

Arbitrum, another prominent layer-2 solution, claimed the third position with a developer activity of 110.77, despite its native asset, ARB, plunging 32% within the same timeframe. The trend extends across the list, with projects like Cartesi, Immutable X, and Skale Network ranking high in developer activity while grappling with declines in their respective native token values.

Even Bitcoin layer-2 sidechain MintLayer, along with Ethereum-based networks Polygon, MetisDAO, and Mantle, demonstrated notable developer engagement despite facing losses in their native tokens. The commitment to development in these projects underscores a steadfast belief in the long-term viability and potential of layer-2 scaling solutions, irrespective of short-term market fluctuations.

Santiment's analysis not only highlights the resilience of layer-2 networks amidst market turmoil but also underscores the importance of continued innovation and development within the cryptocurrency ecosystem. Despite the challenges posed by recent market conditions, the sustained activity among developers signals a collective commitment to advancing blockchain technology and addressing scalability issues, ultimately paving the way for broader adoption and sustainability in the future.