Thoughts on L2 Projects?

[R1dwanRz]

When I look at Layer 2 projects, I often think of BLAST as an example of how these networks are trying to give users a smoother experience. It showed how moving activity off the main chain can lower costs and make apps easier to use.

BOOST project caught my eye for a different reason. It focuses on engagement rather than just transactions. The team behind Alphabot built it so users can complete tasks like following accounts or sharing content in exchange for rewards. With Abstract as its Layer 2 base, it aims to keep things simple for anyone who wants to take part, even without deep crypto knowledge.

Their token BOOST even powers these campaigns and rewards, surprisingly how it's been gaining traction with, like listings on Bitget, MEXC and others. Considering it also plays a role in encouraging participation and engagement, making it more than just a tradable asset.

I wonder how many people will actually start using these L2 engagement projects and if they could change the way we think about tokens?

[asriloni]

My honest opinion here. L2s is being flooded. We have way too many L2 in the market, which is resulting in the demand that gets divided into the many L2. Blast was an example of one of failed L2. it has less users compared to the top L2.

Other than that, you're also mentioning BOOST, which is recently trading on some minor exchanges. My review for Boost is that it's only just another copy cat. L2 is just L2 bro, saying it will focus on engagement instead of tx is bullshit. It's because any txs in L2 means engagement by users with the L2 itself.

[nelson4lov]

I thought we all agree that L2s like blasts are dead?

I like L2s given the fact that they make DeFi cheap for retail as opposed to ethereum where gas fees on slow days are from $1.

Edit: just saw the reference to alphabot and I agree with the thesis in OP simply because without cheap L2s like base/starknet/abstract with < $0.1 in transactions fees, projects like alphabot won't be successful because these are projects that can just live on L2s since there's NO reason for them to get their own chain.

L2s for the win.

[TastyChillySauce00]

If you see the trend from many of the less popular L2 they always generate low revenue and all the TVL has fled from their blockchain.
The people hardly uses those blockchain because they're already sticking with base and arbitrum. This L2 is so stable and cheap that it just works.

The other? not so much because there's not many ecosystem and defi. Even ZKsync is kinda dead right now despite the hundred millions fundraising.
I will expect the same thing to happen to other L2. I've honestly used abstract before and for some reason its rather expensive blockchain despite being L2.

Maybe it's because the blockchain is overcrowded because people expect airdrop for interaction.

[FinneysTrueVision]

Linea has started to make a comeback recently after they had their airdrop and TGE. They are also offering a massive amount of incentives to attract users to their chain. There really is no killer apps though, so when the subsidies start running out or the token price crashes because of farmers dumping, people will leave and it will be another floundering L2.

[X-ray]

Linea has started to make a comeback recently after they had their airdrop and TGE. They are also offering a massive amount of incentives to attract users to their chain. There really is no killer apps though, so when the subsidies start running out or the token price crashes because of farmers dumping, people will leave and it will be another floundering L2.

They are incentivizing Liquidity Providing on Etherex through brevis and various defi right now. Same as you, I doubt TVL will be retained if there's no incentives anymore.

The same thing that have happened to blast. When there's no incentives, the mercenary capital are moving out and the blockchain got the real TVL it's supposed to have from the start.

L2 market is too diluted and capitals are fragmented.

[passwordnow]

I wonder how many people will actually start using these L2 engagement projects and if they could change the way we think about tokens?

Very saturated while some might be notable and good ones but not all of them are. These L2 tokens are as good as advertised by their marketing team for the trading purposes. I think that they will only act on once they started to see some recognition from the market and that will boost their trading volume. Other than that, they're just mere projects that are trying their luck while we're on a bull run.

[BattleDog]

L2s are starting to look like cloud providers: lots of logos, same three questions decide everything.

A true Layer2 posts data to a secure DA layer and has working fraud/validity proofs. Sidechains and validiums ride the marketing but not the same trust model.
A single multisig with a kill switch is fine for an alpha, not for your savings. Roadmap to shared sequencing, PBS/MEV policy, and permissionless provers are the moat, not a token ticker.
Cheap gas is usually a subsidy. When the grant runway ends, does the chain still make sense? Look at fee revenue vs incentives, not campaign airdrops.

On "engagement L2s": tasks and points spike vanity metrics, not retention. Health looks like this: 30-day retained unique signers, organic contract deployments, and fee payer diversity. If a token accrues nothing from throughput (most L2 tokens do not yet), it is just a raffle ticket on future governance.

[Abiky]

When I look at Layer 2 projects, I often think of BLAST as an example of how these networks are trying to give users a smoother experience. It showed how moving activity off the main chain can lower costs and make apps easier to use.

BOOST project caught my eye for a different reason. It focuses on engagement rather than just transactions. The team behind Alphabot built it so users can complete tasks like following accounts or sharing content in exchange for rewards. With Abstract as its Layer 2 base, it aims to keep things simple for anyone who wants to take part, even without deep crypto knowledge.

Their token BOOST even powers these campaigns and rewards, surprisingly how it's been gaining traction with, like listings on Bitget, MEXC and others. Considering it also plays a role in encouraging participation and engagement, making it more than just a tradable asset.

I wonder how many people will actually start using these L2 engagement projects and if they could change the way we think about tokens?

These L2 projects are good and all, but we're reaching a point where the market is getting flooded of them. There are two many L2-based tokens these days. Probably more than we'll ever need. To make matters worse, developers are now building layers on top of existing layers. We're beginning to see L3 projects emerge as the "next big thing". All of this is overhyped, imo.

Scaling the main blockchain (L1) is what should've been done in the first place. Eventually, these L2s will reach their limit as they're bounded by the parent chain's TX capacity. I'd only invest in old, reliable L2 projects with a proven track record of development and innovation. The rest are just a gamble. But that's just my opinion. Do your own research and see for yourself.