Layer 2 Networks Surge to $9.16B TVL as Bitcoin Price Fluctuates Amid ETF Inflows
The cryptocurrency market is currently experiencing notable shifts, particularly in the realm of Layer 2 networks and Bitcoin's price movements. As of now, the total value locked (TVL) across Layer 2 platforms has reached $9.16 billion, up from $8.87 billion yesterday. This indicates a healthy uptick in user engagement and investment in these scaling solutions.
Examining the top five Layer 2 networks, Base leads with a TVL of $2.89 billion, reflecting a decrease of 3.09% from the previous day. Arbitrum follows closely with a TVL of $2.67 billion, down 3.30%. Optimism stands at $731.51 million, down 2.40%, while Blast has a TVL of $656.60 million, marking a 2.80% decline. Mantle rounds out the list with $601.85 million, a decrease of 3.53%.
In the broader market, Bitcoin (BTC) is currently priced at $76,383, a slight drop from $76,502 yesterday. Ethereum (ETH) is witnessing a more positive trend, now priced at $3,040, up from $2,958. The recent surge in Bitcoin's price can be attributed to significant inflows into Bitcoin ETFs, which saw a record $1.38 billion in a single day, the largest since their launch. This influx followed Donald Trump’s election, pushing BTC to a high of $76,943, with analysts eyeing a potential target of $80,066. However, they also caution that a dip to $66,650 could be on the horizon.
In regulatory news, Detroit has announced plans to accept cryptocurrency for tax payments starting in mid-2025. This initiative aims to spur tech innovation and fuel economic growth, allowing residents to pay taxes using popular cryptocurrencies like Bitcoin and Ethereum through a PayPal-managed platform.
Furthermore, BlackRock's Bitcoin ETF has surpassed its iShares Gold ETF, reaching over $33 billion in net assets. This shift underscores the growing institutional interest in Bitcoin as a digital asset. Additionally, Tether has completed its first crude oil transaction in the Middle East, marking a significant step in its strategy to become a player in commodities trading.
Looking ahead, the potential for regulatory changes may arise with a Trump presidency. Analysts speculate that a less restrictive SEC chair could lead to more favorable crypto regulations, further supporting the market's growth.
As for fundraising, there have been no significant rounds reported today due to the weekend. However, cumulative fundraising over the current week stands at $35.15 million, indicating ongoing interest in crypto projects despite market fluctuations.
