Zircuit, an Ethereum Layer 2 network, has experienced rapid growth in its pre-mainnet phase, with over $1 billion in deposits within just six weeks of opening to investors. The project has garnered 333,839 Ether, as well as liquid staking tokens and restaking tokens, totaling approximately $1.11 billion at current prices. Additionally, the network holds over $45.9 million worth of stablecoins, primarily consisting of Ethena’s yield-bearing USDe token. Zircuit allows users to stake ETH and Ether staking derivatives in exchange for Zircuit Points, which can provide eligibility for future airdrops and additional yield based on deposited assets.
Moreover, Zircuit has introduced a “Build to Earn” program to incentivize developers to build infrastructure, tools, and deploy decentralized applications on the network’s testnet. The project operates as a hybrid rollup, combining zero-knowledge proofs with optimistic infrastructure, and is fully compatible with the Ethereum Virtual Machine (EVM). This compatibility allows existing applications supporting EVM execution to seamlessly migrate their code onto the Zircuit network. Zircuit’s focus on faster transactions and lower fees is supported by grants from the Ethereum Foundation for research on rollup compression and scaling cryptography.
Zircuit’s rapid growth in the pre-mainnet phase resembles that of Blast, another prominent Layer 2 network developed by the team behind Blur, a leading NFT marketplace. Blast became the third-largest Layer 2 network with a total value locked (TVL) surpassing $2 billion upon its mainnet launch on February 29. Blast attracted significant deposits by offering points alongside native rewards from supported yield-bearing assets, amassing over $500 million in assets within a week of launching a one-way deposit contract in mid-November. The Layer 2 ecosystem on Ethereum has seen significant expansion over the past year and a half, with a total value locked surpassing $36.7 billion and transaction activity on these networks surpassing that of the Ethereum mainnet.
The Ethereum-based layer 2 network Arbitrum holds a market share of 49.17% among layer 2 networks, surpassing Optimism Mainnet with its 28.85% market share. Arbitrum has seen consistent growth in its TVL since October last year, rising about 50% from $1.66 billion to $2.51 billion. The Layer 2 ecosystem on Ethereum continues to evolve and expand, with networks like Zircuit and Blast driving innovation and scalability within the blockchain space. With increasing interest and investment in Layer 2 solutions, Ethereum’s scalability and efficiency are being improved to accommodate the growing demand for decentralized applications and transactions on the network.
