Is Espresso Systems (ESP Token) really helping users?
Espresso Systems is building a decentralized base layer designed to improve Layer-2 rollups, mainly by boosting interoperability and performance. The idea is to make cross-chain composability easier and reduce dependence on centralized sequencers. So far, the project has raised around $60 million in funding and is backed by well-known names like Coinbase Ventures, Polychain Capital, and Polygon. However, from what I understand, most of this funding is in the form of equity investment, not direct token investment — which is an important point to keep in mind. Looking at the tokenomics, the initial supply is about 3.59 billion $ESP tokens, and there is no fixed maximum supply. New tokens will be issued over time through staking rewards and incentive programs, similar to other proof-of-stake inflation models. For the token to hold value long term, protocol fees would need to grow faster than token emissions. At the current pre-market price of around $0.07, the fully diluted valuation comes out to roughly $300 million. In the short term, I expect some downside pressure due to airdrop selling and general market conditions. But over the long term, a steady rise could be possible if rollups adopt Espresso’s technology at scale. This is just my personal view — make sure to do your own research and only invest what you can afford to lose. #EspressoSystems #NewToken
I’ve been keeping an eye on #LayerZero ($ZRO ) for a while now, and overall I’m still feeling fairly positive about it. What I like most is what they’re trying to solve — cross-chain communication. If DeFi keeps expanding, projects that help different blockchains work together could end up being pretty important.
Another thing that gives me some confidence is the tech itself and the number of protocols already using their omnichain messaging. They’ve also partnered with companies like Google Cloud, and seeing big names such as Citadel and Ark Invest involved does add a bit of trust in a market that’s been shaky lately.
The recent price swings don’t really surprise me. There was a lot of hype after their Zero Layer-1 announcement and the talk about using zero-knowledge proofs for better performance. Plus, there’s a token unlock of around 25.7M ZRO coming up on Feb 20, so it makes sense that traders are jumping in and out, which is probably causing most of the volatility.
At the moment, the price is sitting around $2.5, with about $82M in 24-hour USDT volume. Today’s high was roughly $2.59 and the low went down to around $1.7.
Just sharing my thoughts — definitely do your own research and don’t invest more than you can afford to lose.