Cryptocurrency Market Update: Layer 2 TVL Drops, Bitcoin and Ethereum Prices Decline Amid Fed Meeting
The cryptocurrency market is experiencing notable fluctuations as of recent days. The total value locked (TVL) in Layer 2 networks has decreased to $10.54 billion from $10.81 billion yesterday. Among the top five Layer 2 networks, Base leads with a TVL of $4.06 billion, though it has seen a decline of 1.85%. Arbitrum follows with $3.37 billion, down 2.71%. Optimism remains relatively stable at $813.40 million, with a slight increase of 0.03%. Blast and Mantle have also faced drops, with Blast at $554.77 million, down 3.31%, and Mantle at $512.12 million, down 0.49%.
In the broader cryptocurrency market, Bitcoin (BTC) is currently priced at $104,489, down from $106,136 yesterday. Ethereum (ETH) is trading at $3,857, a decrease from $3,880. The shifts in these prices come as investors prepare for the Federal Reserve's upcoming meeting and its potential impact on the market.
Today, the total fundraising in the crypto space has reached $723.10 million. The largest round comes from CleanSpark, which secured $650 million. BVNK raised $50 million, while Prometheum brought in $20 million. Over the current week, cumulative fundraising has totaled $1.35 billion, indicating significant investment interest despite market volatility.
In notable news, Aave protocol developer Avara has secured $31 million for Lens, a high-performance blockchain aimed at social applications. This funding round, led by Lightspeed Faction, follows a major overhaul of the Lens protocol, positioning it as a potential backbone for decentralized social and consumer apps.
In the context of regulatory developments, Deutsche Bank is making strides by building a Layer 2 blockchain on Ethereum using ZKsync. This initiative aims to enhance compliance within regulated finance, reflecting a growing interest from traditional financial institutions in blockchain technology.
Additionally, Ohio Representative Derek Merrin has introduced House Bill 703, which proposes the establishment of a state Bitcoin Reserve. This bill would grant the state treasurer the authority to purchase Bitcoin, marking a significant step towards institutional adoption of cryptocurrency at the state level.
As the cryptocurrency landscape evolves, all eyes are on the Federal Reserve's upcoming meeting. Market participants are particularly focused on the Fed's projections for 2025 rate cuts, which could lead to varied reactions across the crypto spectrum, from relief rallies to sharp declines.
