Zircuit, the Ethereum Layer 2 network, has swiftly exceeded $1 billion in pre-mainnet deposits in just six weeks since its inception for investors. With 333,839 Ether, encompassing ETH, liquid staking tokens (LSTs), and restaking tokens (LRTs), the project’s total surpasses $1.11 billion at present market rates, as per insights from Dune Analytics.
Additionally, the network boasts a substantial holding of over $45.9 million worth of stablecoins, predominantly comprised of Ethena’s yield-bearing USDe token.
Zircuit Enables ETH Staking Derivatives
Zircuit launched a points campaign on February 24, allowing users to stake ETH and Ether staking derivatives to earn Zircuit Points. These points not only make users potentially eligible for a future airdrop but also offer additional yield and points based on the assets deposited.
On March 27, the project unveiled its “Build to Earn” initiative, which incentivizes developers to create infrastructure, tools, and deploy decentralized applications (dApps) on Zircuit’s testnet, introduced in November.
It’s worth highlighting that Zircuit enables users to withdraw their pre-mainnet deposits whenever they choose.
Operating as a hybrid rollup, Zircuit integrates zero-knowledge proofs with optimistic infrastructure. Moreover, it boasts full compatibility with the Ethereum Virtual Machine (EVM), the fundamental smart contract engine of Ethereum. This compatibility enables smooth migration of existing applications supporting EVM execution onto the Zircuit network.
Zircuit achieves faster transactions without incurring exorbitant fees through compression techniques. Notably, the project has garnered grants from the Ethereum Foundation to support its research on rollup compression and scaling cryptography, underscoring its dedication to enhancing Ethereum’s scalability and efficiency.
Ethereum Layer 2 Blast Sees Massive Growth
Zircuit’s swift rise during its pre-mainnet phase draws parallels with Blast, another notable Layer 2 network. Developed by the team behind Blur, a prominent NFT marketplace, Blast surged to become the third-largest Layer 2 network upon its mainnet debut on February 29, with a total value locked (TVL) exceeding $2 billion.
Blast attracted significant deposits even prior to releasing any code, enticing users with points alongside native rewards from supported yield-bearing assets. Within merely a week of launching a one-way deposit contract in mid-November, Blast accumulated over $500 million in assets.
Over the past year and a half, Ethereum’s Layer 2 ecosystem has witnessed remarkable growth, with the total value locked (TVL) surpassing $36.7 billion. In a significant milestone, transaction activity on Layer 2 networks surpassed that of the Ethereum mainnet in October last year, with these networks now consistently processing five times as many transactions, as reported by L2beat.
Arbitrum, an Ethereum-based Layer 2 network, currently commands a dominant market share of 49.17% among Layer 2 networks, far outpacing its closest competitor, Optimism Mainnet, which holds a 28.85% market share.
Furthermore, Arbitrum has witnessed a steady increase in its TVL since October last year, experiencing a growth of approximately 50% from $1.66 billion to its current value of $2.51 billion, according to data from DeFi tracking site DefiLlama.
