Within a week, two Ethereum L2s announced they were shutting down; on the same day, $ARB fell 8.52% on Binance Spot 🧊
First, the news: Abstract, built by Igloo, the parent company of Pudgy Penguins, announced it will cease operations on December 15. CEO Luca Netz said the project burned through tens of millions of dollars over 18 months but still failed to find product-market fit. Assets left on the chain after the deadline will be unrecoverable.
Less than a week ago, Paradigm-backed Blast also announced it was shutting down, citing operating costs that exceeded revenue.
Now, the market (Binance Spot, Beijing time, 10-07 13:37): $ARB was at 0.1868, down 8.52% over 24 hours. According to TokenPost, ARB once plunged 7.4% in an hour, with about $1.79 million in long positions liquidated. There is no confirmed direct link between the decline and the wave of L2 shutdowns; the broader market was also weakening during the same period.
The scenario: If ARB holds above 0.18 and climbs back above 0.20, the drop looks more like a sentiment-driven sell-off. If it breaks below 0.18 decisively, it may give back more of its September rebound.
As smaller chains contract, are leading L2s absorbing their users, or are they all being dragged down together?
Sources: CoinDesk, The Block, TokenPost, Binance market data
$ARB #Layer2 #Ethereum
#BinanceSquare
⚠️ The above is a compilation of information and personal opinions, and does not constitute investment advice. DYOR.
First, the news: Abstract, built by Igloo, the parent company of Pudgy Penguins, announced it will cease operations on December 15. CEO Luca Netz said the project burned through tens of millions of dollars over 18 months but still failed to find product-market fit. Assets left on the chain after the deadline will be unrecoverable.
Less than a week ago, Paradigm-backed Blast also announced it was shutting down, citing operating costs that exceeded revenue.
Now, the market (Binance Spot, Beijing time, 10-07 13:37): $ARB was at 0.1868, down 8.52% over 24 hours. According to TokenPost, ARB once plunged 7.4% in an hour, with about $1.79 million in long positions liquidated. There is no confirmed direct link between the decline and the wave of L2 shutdowns; the broader market was also weakening during the same period.
The scenario: If ARB holds above 0.18 and climbs back above 0.20, the drop looks more like a sentiment-driven sell-off. If it breaks below 0.18 decisively, it may give back more of its September rebound.
As smaller chains contract, are leading L2s absorbing their users, or are they all being dragged down together?
Sources: CoinDesk, The Block, TokenPost, Binance market data
$ARB #Layer2 #Ethereum
#BinanceSquare
⚠️ The above is a compilation of information and personal opinions, and does not constitute investment advice. DYOR.