When new test networks emerge, such as zkSync, Layer0, ConsenSys (Linea), StarkNet, and Arbitrum, they can affect liquidity in different ways.
First, developers can experiment with new scaling solutions and test them in a secure and controlled environment using these networks. These innovations will bring better solutions in terms of network scalability, which may ultimately attract new users.
Second, test networks open new frontiers for developers and users, as the new tool set al-lows for experimentation and development of products that were not feasible on other net-works, which can increase demand for assets and improve liquidity. And as more and more people start using these networks, it entails a corresponding increase in trading activity and liquidity.
Third, the launch of new test networks may lead to the creation of new assets or the transfer of existing assets to these networks. This may affect the liquidity situation of the original net-work, as assets may be taken out of circulation, but it may also increase the liquidity of the new network.
The emergence of new networks only has a positive impact at first, if developers are unable to retain users in the near future, they will all go back to off-the-shelf solutions with a huge user and product base.
ZkSync is a scalable solution for Ethereum that uses zero-knowledge proofs (ZK-Proofs) technology to provide fast and cheap transactions on the Ethereum mainnet.
One of the key features of ZkSync is the use of zero-knowledge proofs technology, which provides a high degree of confidentiality and security for users. With ZkSync, users can send transactions without revealing any confidential data, such as balances or sender and recipi-ent data.
If we look at the transaction activity of funds in the zksync network, we see that the average number of deposits at normal times did not get used to 1000 transactions per day, but the jumps of 6-7-10 and 20 times were after other projects retrospectively rewarded participants in their networks: Aptos (late October 2022) and Arbitrum (mid-March 2023).
And after that, for 2 or 3 weeks, activity holds, but eventually returns to the natural values formed by the true interest of users in the network, not caused by the hunt for rewards.
Zonic - a multichain NFT marketplace that supports zksync
Based on 30 days of activity and trading volume, we can confidently say that as such a full-fledged NFT market does not yet exist, because users have no interest.
It turns out that this is a vicious circle, because the developers do not show interest in the network, as NFT sector has very little activity, and this is precisely what leads to the fact that ordinary users are not interested in ZkSync NFT market, because promising projects with a top team are not built.
LayerZero Network is a decentralized network that provides infrastructure for building and executing high-performance and scalable blockchain applications. It uses sharding technol-ogy to break the network into smaller, manageable parts, increasing performance and effi-ciency in the interaction between network nodes.
LayerZero Network also provides tools for developing and deploying decentralized applica-tions that use smart contracts and other blockchain technologies. It integrates with various blockchains such as Ethereum, Binance Smart Chain, Polkadot, and others, ensuring univer-sality and ease of migration for existing applications to the LayerZero Network.
The key advantages of LayerZero Network include high performance, low transaction fees, scalability, security, and ease of use, making it one of the most promising blockchain plat-forms for building decentralized applications.
The situation is similar, with spikes in activity coming on dates when large projects rewarded their users for continued online activity.
Omni X is a Layer Zero NFT platform that allows users to buy and sell NFT from any blockchain to another.
Holograph is a LayerZero-based platform for creating NFTs and transferring them between networks.
There is minimal activity in the NFT sector at the moment, as users can build a collection and move NFTs between different networks, with Ethereum, Polygon (Matic) and Avalanche currently available.
ConsenSys (Linea) is the next evolution of ConsenSys zkEVM, supporting the next genera-tion of decentralized applications built on Ethereum. Linea is Layer2, on which developers will create new decentralized applications and make them easily accessible in MetaMask.
Activity on the test network has been high since the opening of the closed beta test (late January/early February), and since the launch of the public test network, activity has in-creased several times more.
Their first "Hello World NFT" was very quickly minted and ConsenSys launched a new mint.
This is the Open Edition of NFT in honor of the launch of the public testnet.
The deadline is June 18, 2023 and so far, ~66,000 NFT have been minted.
Approximate mint price is ~0.0007 $ETH.
StarkNet is a platform for developing and deploying highly efficient and secure decentralized applications (dApps) based on the Ethereum protocol. It is designed by StarkWare, a leading provider of scalability and privacy solutions for blockchain.
One of the key features of StarkNet is its scalability. It can process up to 100,000 transac-tions per second and provides minimal delays in processing transactions, making it an ideal choice for creating high-load dApps that require high performance and efficiency.
Since the network has not yet received all of its planned updates, users are experiencing big problems with transaction speeds.
The flurries of activity also come with news about the launch of the Aptos token and news that the network has received updates and transactions will be processed faster, as this is a very big problem for StarkNet.
Mint Square enables NFT trading on StarkNet and zkSync Era: cheaper transactions and faster confirmation time, while being fully secured by the Ethereum consensus.
Mint Square is an NFT Platform on Ethereum Layer 2 ZK Rollups. Mint Square is aiming to build the best multi-chain ZK Rollup NFT marketplace, onboarding the next 100 million peo-ple to mint and trade NFT assets.
Monthly trading volume on the NFT Marketplace exceeds $ 100,000, but this is less than a percentage of the daily NFT trading volume on the Ethereum network.
Arbitrum Network is a decentralized and scalable platform for executing smart contracts on the Ethereum blockchain. It operates as an Ethereum "layer 2" solution, working alongside the main Ethereum network to handle large volumes of transactions quickly.
Arbitrum is also compatible with the Ethereum Virtual Machine (EVM), enabling developers to use existing tools and libraries to create smart contracts on the layer 2 network. Addition-ally, Arbitrum allows users to transfer their Ethereum assets to the layer 2 network and use them for fast and cheap transactions.
If you analyze the Arbitrum network statistics, the activity in June 2022 was caused by the launch of the Arbitrum Odyssey event, after which in July this event was suspended indefi-nitely and the activity immediately dropped.
In September 2022 the Arbitrum One update was launched, which caused a jump in activity, but it was not enough for a long time and activity returned to its natural values.
In October 2022 there was another spike and as described above it was caused by the re - lease of Aptos and the distribution of rewards for users.
The peak of activity in the NFT sector came at the launch of Arbitrum Odyssey event in the summer of 2022, when the number of active wallets that interacted with NFT increased to 437,000, but these are wallets of the same people who participated in the event from mul-tiple wallets. Since then, the number of active wallets has only been decreasing, as the event was suspended, and no bright projects have appeared, as NFT-enthusiasts focus on Ethereum and Solana networks.
The total trading volume in the Arbitrum network is the two-day trading volume of NFT in the Ethereum network or the monthly trading volume in the Solana network. So it is safe to say that in no way has Arbitrum succeeded in attracting NFT enthusiasts to its ecosystem at the expense of cheaper and faster transactions.
As statistics show, a kind of activity, number of transactions and users the network has, does not transfer in any way to the main network, because most of the activity is carried out by the same users. When other projects will reward their regular users, people will start to be active in projects that do not yet have a token, but this is not a natural increase in audience and in-terest, it is just users trying to get a reward. After that, they are unlikely to use the network. Previous experience shows that only a small percentage of peak network activity remains, while many go back to the familiar Ethereum and Solana.
