Cryptocurrency Market Update: Layer 2 TVL Hits $9.34B as Bitcoin Surges to $97,392
The cryptocurrency market is showing notable movements as the total value locked (TVL) in Layer 2 networks has risen to $9.34 billion, up from $9.23 billion yesterday. This increase reflects a growing interest in scaling solutions, particularly in the top five Layer 2 networks.
Breaking down the TVL among these networks:
- Base: $3.63 billion, up 1.21% from yesterday.
- Arbitrum: $3.03 billion, up 1.12%.
- Optimism: $735.45 million, up 1.36%.
- Blast: $472.19 million, up 0.58%.
- Mantle: $468.90 million, up 2.13%.
In the broader market, Bitcoin's price has surged to $97,392, a significant jump from $94,595 yesterday. Ethereum is also on the rise, currently priced at $3,454, compared to $3,414 the previous day. However, this rally comes with caution, as Bitcoin’s recent performance has been closely tied to the global M2 money supply. Joe Consorti of Theya pointed out that Bitcoin's correlation with M2 has been strong, and with recent contractions in this money supply, a price correction could be on the horizon, possibly revisiting levels around $90,000.
Amid these price movements, fundraising efforts in the crypto space have seen a cumulative total of $20.62 million this week. The largest rounds include:
- Usual: $10 million
- Avalon Labs: $10 million
- The Grid: $624,000
In other news, Solv Protocol has launched BTC staking on its mainnet, allowing Bitcoin holders to earn yield while maintaining the integrity of Bitcoin’s architecture. This development adds to the growing trend of DeFi solutions aimed at enhancing Bitcoin's utility.
On the corporate front, MicroStrategy is planning a special shareholder vote to support its ambitious $42 billion Bitcoin acquisition strategy. Executive chairman Michael Saylor has proposed increasing the number of authorized Class A shares significantly to facilitate future capital raising efforts.
As the market evolves, regulatory concerns continue to loom, particularly with reports linking North Korea to a $305 million hack on a Japanese crypto exchange. This incident adds another layer of scrutiny to the already complex landscape of cryptocurrency regulations.
Overall, the current situation in the cryptocurrency market reflects a mix of optimism and caution, driven by price movements, technological advancements in DeFi, and ongoing regulatory challenges.
