MetisDAO TVL surges by 99,800% as the layer-2 race heats up

3 months ago 70

Attracting liquidity has go a de facto arms contention successful the increasing decentralized concern (DeFi) landscape. Projects perpetually conflict to pull investors funds by offering enticing yields for crypto holders consenting to instrumentality a hazard and fastener up their assets and protocols usage this funds to physique retired their products and pull attraction from larger investors. 

One protocol that has been gaining traction successful the full worth locked (TVL) contention is MetisDAO (METIS), a layer-two rollup level designed to afloat enactment the exertion and concern migration from Web2 to Web3.

Top 10 TVL gainers implicit the past month. Source: CCK Ventures

Alongside the maturation successful the TVL connected its protocol, the METIS token has besides received a boost of momentum with information from Cointelegraph Markets Pro and CoinGecko showing that the terms of METIS climbed from a debased of $49.83 connected Dec. 14 to a caller all-time precocious astatine $323.54 connected Jan. 16.

METIS/USD 3-hour chart. Source: TradingView

Three reasons for the increasing TVL connected the Metis protocol see the motorboat of aggregate DeFi protocols connected the network, added enactment for METIS-based trading pairs connected cross-chain protocols and the network’s quality to connection Etherum users little transaction costs and faster processing times.

Multiple DeFi protocols motorboat connected Metis

The largest boost successful worth connected Metis comes from the motorboat of respective caller DeFi protocols that are exclusively connected the Metis network. These see NetSwap (NETT), Agora (AGORA) and Tethys Finance (TETHYS).

Top 3 protocols connected METIS by full worth locked. Source: Defi Llama

Together, these 3 protocols relationship for $325.24 cardinal retired of the $353.36 cardinal successful worth presently locked connected Metis.

The concern betwixt METIS and Agora was lone revealed connected Jan. 19, meaning that it lone took 2 days for the existent TVL to beryllium reached. This suggests that the wide TVL connected the Metis concatenation volition soon beryllium headed higher.

NetSwap (NETT) is the longest-running protocol connected METIS, having conducted its just motorboat connected Dec. 6, 2021, it presently offers APRs for liquidity providers (LP) that scope from 56% for WETH/m.USDT to 1,034% for BNB/NETT LPs. NetSwap reached a full trading measurement of $1 cardinal connected Jan. 19 which represents $2.5 cardinal worthy of transaction fees that person been rewarded to LP providers.

Cross-chain span support

A 2nd crushed for the increasing worth hosted connected the Metis web includes the added enactment from aggregate cross-chain bridges that supply wider vulnerability to the Metis ecosystem.

Beefy Finance is 1 of the larger protocols that has added enactment for Metis-based tokens including METIS, NETT, and Metis-based versions of Tether (USDT), USD Coin (USDC) and Wrapped Ethereum (WETH).

— Beefy Finance (@beefyfinance) January 16, 2022

Since announcing the concern connected Jan. 16, the TVL from the Metis web connected Beefy Finance has reached $24.56 million.

Other cross-chain platforms that person added enactment for Metis see Pickle Finance, Poly Network, the Celer Network’s cBridge, BoringDAO, Relay Chain and Multichain.

Related: Blockchain assessment: How to measure antithetic chains?

Metis goes cross-chain

The 3rd origin attracting worth to the Metis ecosystem is the low-fee, precocious throughput capabilities of the web that assistance Ethereum users prevention clip and money.

The wide extremity of Metis is to connection transactions that settee successful little than a 2nd and outgo little than $1 successful fees. According to the project’s whitepaper, this volition beryllium achieved by utilizing the theoretically infinite scalability of the Metis Andromeda network.

These capabilities person led to the accelerated maturation of the Metis ecosystem arsenic a whole, which present supports aggregate DeFi protocols and NFT projects.

Most recently, Metis has established a concern with Curate, a cross-chain nonfungible token (NFT) marketplace that volition alteration gasless transactions.

— Metis (@MetisDAO) January 13, 2022

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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