LayerZero Ecosystem Grows Fast Before Launching ZRO

The increasing popularity of Omnichain technology helps the LayerZero ecosystem and the first piece in the Stargate ecosystem receive widespread acceptance from users and an increasing number of integration projects. Join us in updating LayerZero Ecosystem in the article below.

To better understand LayerZero and Omnichain technology, people can refer to some of the articles below:

• What is LayerZero? LayerZero Cryptocurrency Overview
• What is Omnichain? Advantages and disadvantages of Omnichain
• What is Omnichain NFT? Can Onmichain NFTs Become Trending?

On Chain Metrics On LayerZero Ecosystem

On-chain metrics on LayerZero

It can be said that LayerZero is possessing a growth rate similar to projects in 2021. An outstanding and unexpected growth rate by both users and investors. There are three main reasons driving the strong development of LayerZero including:

• Airdrop/Retroactive: Airdrop is the easiest and safest way to make money during the market winter. With projects that have had large airdrops to users such as Optimism, Arbitrum,…, it is understandable that users are looking for similar projects. LayerZero is certainly on that list, having raised hundreds of millions of dollars in capital and being a truly groundbreaking product.
• Omnichain: With Chainlink launching CCIP and Circle – the parent company of USDC introducing CCTP, both aim at the omnichain model to completely solve the problem of liquidity fragmentation caused by old model bridges. This also promoted the development of LayerZero as it was the first project to coin the Omnichain concept.
• Real needs: Maybe Layer 1 is no longer as strong and influential as in 2021, but now is the time for Layer 2 such as Arbitrum, Optimism, zkSync, Base, Linea,… to move assets between different Blockchains is extremely urgent. Therefore, Stargate is one of the notable destinations with high security and reasonable fees.

It is for the above reasons that LayerZero is one of the projects that is interested and sought after by the community. And all that interest and pursuit is shown through numbers.

As of the time of writing, LayerZero and its ecosystem have reached nearly 3M first users and together created more than 51M transactions. Along with that are a series of notable indicators such as:

• The number of users using more than 20 transactions accounts for 33% of the total number of users.
• The number of users using 2 Blockchain accounts for 74% of the total number of users.
• The number of users for 2 months or more accounts for 42% of the total number of users.

It can be seen that in the past 1 month, Chainlink’s launch of CCIP and Circle’s introduction of CCTP have had a positive impact on LayerZero’s network when the number of users of 1 month or more of the platform accounts for 58%. total number of users.

However, the airdrop fever on LayerZero has shown signs of cooling down recently when the market launched a series of famous projects that are not inferior to LayerZero such as Base – Coinbase’s Optimistic Rollup platform, Linea – Coinbase’s Optimistic Rollup platform. zkRollup is developed by Consensys, zkSync – the Layer 2 project has successfully raised hundreds of millions of dollars or StarkNet has somehow attracted LayerZero users.

At present, it will be relatively difficult to show that out of the total number of daily users of LayerZero, how many are real users and how many are users who use it to hunt for airdrops. However, if compared with a recent project like Arbitrum, the number will be about 70% of real users, and with Optimism, this number is about 50%.

But we cannot deny that LayerZero creates a real demand for the Stargate product. The project team also shared that: “If you exclude transactions under $100, LayerZero and Stargate are still large Bridge platforms. Crypto market”.

The user purge will definitely happen right after LayerZero announces its Native Token LZO in the near future.

On-chain indicators on Stargate

In contrast, Stargate’s TVL plummeted from $4B to just around $400M and remained at this level for a long time. However, Stargate’s Bridge Volume has grown strongly since the beginning of the year, from only about $3M at the beginning of the year, currently the average Bridge Volume is at about $100M per day and reached an ATH of $180M. in March 2023.

For Stargate, the number of wallet addresses with more than 10 transactions accounts for nearly 40% of the total number of wallet addresses. It can be said that Stargate is the project with the most user concentration on LayerZero Ecosystem.

Some on-chain indicators of protocols on LayerZero Ecosystem

Radiant is a Lending & Borrowing project on the Arbitrum ecosystem that has used LayerZero’s technology to enable the transfer of RDNT back and forth between Arbitrum and BNB Chain. To date, a total of more than $61M has been transferred between the two Blockchains, in which users are more inclined to transfer RDNT from Arbitrum to BNB Chain.

Aptos Bridge is a product of the combination of Aptos Foundation and LayerZero Labs that helps users move assets back and forth between Ethereum – Aptos. Currently, after peaking in TVL around April 2023, Aptos Bridge’s TVL is at about more than $5M. This is quite understandable after the money flowing into Aptos to seek investment in IDO projects has been withdrawn to participate in other ecosystems.

LayerZero Ecosystem Overview

LayerZero expands its impact

LayerZero Labs has continuously expanded its influence with many different Blockchains. It can be seen that, although LayerZero is a relatively new project, LayerZero’s approach is reasonable when supporting new Blockchains and gaining a lot of attention from users such as:

• June 8, 2023: LayerZero is available on Arbitrum Nova – a Layer 2 platform developed by Offchain Labs using Anytrust technology towards a platform for Gaming & NFT projects.
• June 14, 2023: Scroll is the next destination of LayerZero, anticipating the future zkRollup trend. Scroll is one of the most potential Layer 2 platforms today.
• July 6, 2023: Meter is a rare platform Blockchain (Layer 1) in the list that LayerZero has recently supported. Meter is a Bybrid Blockchain backed by Pantera Capital, AU21 Capital, DVHC,…
• July 20, 2023: Base – Optimistic Rollup platform developed by Coinbase right after mainnet also received support from LayerZero. LayerZero will certainly receive a large number of retroactive hunting users, thereby finding potential users and accompanying the project in the long term.
• July 22, 2023: Right after the Linea mainnet at the ETHCC 2023 event, LayerZero was immediately available to support retroactive hunting users.
• July 27, 2023: Continuing to be a Layer 2 platform called Mantle right after the mainnet is also supported by LayerZero.

It can be seen that LayerZero Labs’ strategy is very clear as they are focusing on the current Layer 2. Layer 2 currently attracts users mainly due to the attraction of airdrops after the cases of Optimism and Arbitrum. But with a Bridge platform, the strategy is that where there is a need, there is a product. In the near future there will be many more Layer 2 platforms with the explosion of Superchain, it will be a busy period of integration for the development team.

To date, LayerZero has supported more than 30 different Layer 1 and Layer 2 Blockchains. This can be seen that LayerZero’s market coverage is extremely fast. With such a rapid expansion rate, many users still believe that LayerZero will sooner or later encounter security problems.

LayerZero Ecosystem expands rapidly

Omnichain is the future and that is shown by the fact that LayerZero’s ecosystem is expanding more rapidly than recent ecosystems such as Aptos, Sui, Base,… In fact, multichain is the direction. In the development of most DeFi protocols, projects can only bring products from chain A to chain B but cannot bring Native Tokens from chain A to chain B. It is obvious why this is necessary. You can deploy DAO, vote, and receive profits on chain A but cannot do the same on chain B. JOE and RDNT have proven that effectiveness.

It doesn’t just stop at tokens, it’s also the story of NFTs and I believe Omnichain NFT will become one of the trends in the NFT industry in the next growth cycle. Now, let’s look back at recent projects that have joined the LayerZero ecosystem.

• Magicfox Finance: Is a DEX platform inspired by Solidly.
• Fronk World: Is an infrastructure platform to build Social Game projects on Arbitrum. With the project’s Genesis Fronk Ticket NFT omnichain technology, it will move between many different Blockchains.
• Penpie: Magpie’s child participated in the Pendle Wars and is currently leading in this war. Penpie uses omnichain technology to move Native PNP Tokens back and forth between Arbitrum and Ethereum.
• Pendle Finance: The project stands out in the LSDfi trend applying omnichain technology so users can use PENDLE on Arbitrum with cheaper transaction costs.
• LuckyBid: Project about NFT Marketplace.
• Interport Finance: Cross-chain DEX project uses LayerZero technology to allow users to buy and sell between many different Blockchains.
• Extra Finance: The project uses LayerZero’s Omnichain Fungible Token (OFT) technology to help move EXTRA back and forth between Optimism and Base without transaction fees.
• Kanpai Pandas: The NFT Collectible project has also used LayerZero’s technology to move between many different Blockchains.
• Portal: The project with the goal of bringing 1 billion Gamers to Web3 uses LayerZero technology to help $PORTAL move seamlessly between chains.
• Valio Finance: Is an asset management platform. Valio uses LayerZero technology to help move assets between chains seamlessly, uniformly and securely.

Above are just a few projects that integrate and participate in LayerZero’s ecosystem. We can see that projects use LayerZero technology for 3 main purposes:

• Moving Native Token across different Blockchains helps users have more experiences.
• Move NFTs across different Blockchains to find investment opportunities.
• Use LayerZero technology to build your own bridges.

Projections for LayerZero Ecosystem in the near future

I believe that LayerZero’s ecosystem in terms of both internal aspects and support for different Blockchains will expand further in the near future. In the context of more and more Layer 2s, LayerZero will be busier at the end of the year. Compared to its biggest competitor, Wormhole, LayerZero is somewhat superior and the keyword located in the Omnichain chain token standard is OFT, helping projects easily access LayerZero’s model.

The orientations of Wormhole and LayerZero are also different. While LayerZero focuses on the trend of Layer 2 platforms, Wormhole seems to be approaching Internet of Blockchain-oriented projects such as Cosmos or Polkadot. With these two orientations, there will certainly be stories of success and failure. It’s just that we don’t know who will succeed and who will fail.

Besides dominating the omnichain market, there are also many rumors that LayerZero will soon deploy the ZRO token in the near future and some things that may happen if the Airdrop project is as follows:

• Total number of transations.
• Total number of interactive Blockchains.
• Total days active on LayerZero.
• Total number of interactive DApps and NFT projects.

Omnichain will definitely become a trend in the future, but how this trend operates is not so clear. So we will continue to monitor the formation and development of LayerZero and LayerZero Ecosystem in the future.

Summary

LayerZero Ecosystem has been experiencing rapid development recently. Everyone should pay attention to this ecosystem to look for future investment opportunities.