The Rise of Layer-3 Scaling Networks

You’ve probably heard of Layer-1 and Layer-2 solutions and their functionalities. But what the heck is Layer-3 (L3) networks?

An L3 is an extra layer built on top of a blockchain network’s Layer 2 to provide additional customization and scalability for decentralized applications. Just as L2s leverage on L1s, L3s leverage security and other core functionalities from L2s.

Although a striking difference between L2s and L3s is that, whereas L2s are used as a generic-purpose scaling solution, L3s are special-purpose scaling solutions. That means L3s are perfect for tailored customization.

Recently, we are beginning to see notable L2s launch their L3s.

Ethereum is becoming exciting again. L3s will unlock a new generation of dApps with novel use cases with scalable infrastructure and security.

Fidelity Joins the ETF Race

Last week, I gave you an intro on spot Bitcoin and the recent filings. This week, Fidelity, the world’s third-largest asset manager files for a Spot Bitcoin ETF. I have bullish vibes over this ETF stuff. Here’s why:

Two of the largest asset managers have filed for spot Bitcoin ETF, and there’s a high likelihood that Vanguard Group and others will join the race soon. Secondly, there are chances that once SEC approves one, it’ll likely approve others.

Upon approval, it will trigger mass adoption of crypto-related assets like we’ve never seen before. Not just that, it will also trigger the bull market earlier than anticipated because there’ll be a huge money flow in crypto.

Chart of the Day

Despite the market sentiments, BNB Chain remains a clear leader in growth in daily transactions on L2s. The interesting thing to look at in the chart is Arbitrum flipping Ethereum in transaction volume.

Arbitrum has been growing steadily since its Airdrop in March. Seems like their airdrop paid off after all.

Actionable Strikes

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