Original source: DL News

Compiled by: Felix, PANews

focus

  • The value of cryptocurrencies bridged to Metis was around $700 million in the past week, surpassing popular competitors like zkSync and Base

  • Metis’ DeFi ecosystem is developing much slower

  • Metis boom comes after announcement of new Grants program

Since December 20, Metis network TVL has grown 7 times, ranking third among Ethereum Layer 2 networks. However, the seemingly rapid growth of TVL is not due to users eager to try the blockchain that has been launched in 2021, but from the increase in the price of METIS tokens and the Grants program launched to encourage developers to build on the blockchain. painting.

On December 18, Metis announced that it would inject 4.6 million Metis tokens (worth nearly $400 million at prices on January 4) into a Grants program to attract developers.

Blockchain data shows that on December 20, Metis minted 4.6 million METIS tokens on the Ethereum network. Two minutes later, 4.4 million coins were transferred to Metis. The tokens are now worth approximately $380 million, equivalent to half of Metis’ TVL.

Metis This measure is fully highlighted by popular indicators such as TVL (the value of a cryptocurrency stored on a blockchain or blockchain application), which can easily reverse or create the illusion of a potential surge in popularity.

To be sure, interest in Metis has surged since news of the Grants program was announced. The number of crypto wallets using Metis has more than doubled in the past two weeks to 6,500. This shows that the protocol can still use ecological development funds to attract capital rather than through airdrops.

Metis’ Grants program will begin distributing tokens sometime in the first quarter of this year.

According to L2BEAT data, the TVL of the Metis network exceeded US$100 million on December 20, and it has just ranked among the top 10 Ethereum Layer 2 networks. On December 21, TVL became $229 million. Today more than $700 million in TVL cryptocurrencies are bridged to Metis, which is less than the Arbitrum and Optimism networks but more than the Base network.

Despite the impressive TVL, relatively few people are actually using the Metis blockchain.

According to DefiLlama data, of the $680 million bridged to Metis, only $80 million was used to develop its DeFi ecosystem, and half of that was spent on the lending protocol Aave.

Metis’ DeFi ecosystem TVL exceeded $80 million this week

This ratio is much lower among the other top five Layer 2 networks.

For example, of the $9.8 billion in cryptocurrencies bridged to Arbitrum, nearly a third (approximately $2.9 billion) is used in its DeFi ecosystem.

While half of Metis’ TVL comes from newly minted tokens, much of the growth also comes from the surge in the price of its Metis token (METIS), which is up more than 200% since December 20.

In addition, according to DefiLlama data, since December 20, although the value of cryptocurrencies in the Metis ecosystem (including METIS) has increased by 87%, the number of METIS tokens in the DeFi ecosystem has decreased by 40%.

Metis isn’t the only Layer 2 blockchain experiencing explosive growth this month. The TVL of the Manta network, launched in September 2023, grew by 1250% in December.

Manta Network TVL growth comes from airdrop hunters who use the Manta blockchain in hopes of qualifying for future airdrops.

(The above content is excerpted and reprinted with the authorization of our partner PANews, original text link)

Statement: The article only represents the author's personal views and opinions, and does not represent the objective views and positions of the blockchain. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.

"TVL grew to US$600 million in two weeks, surpassing Base. What are the "hidden problems" behind Metis's rapid growth?" This article was first published on "Blocker".