- Cancun Ethereum EIP-4844 upgrade expected to benefit Layer 2 protocols.
- Immutable X categorized as category C due to challenges in NFT gaming sector.
- ZkSync positioned as category A with remarkable funding and industry support.
Crypto industry analyst Miles Deutscher has made a noteworthy prediction, stating that the highly anticipated Cancun Ethereum EIP-4844 upgrade is expected to benefit the top-tier Layer 2 protocols greatly. Additionally, Deutscher has meticulously evaluated various projects within the industry, considering their long-term prospects and investment potential. Employing a comprehensive approach, the analyst has diligently categorized these projects into distinct groups, namely A, B, C, and D, based on their performance.
Immutable X (IMX)
Deutscher, a prominent figure in the crypto industry, asserts that the strength of the Immutable X ecosystem lies in its strong emphasis on gaming and NFTs. He acknowledges that the project’s substantial $260 million funding indicates reasonable financial support. However, Deutscher acknowledges that the project has faced challenges due to its association with the nascent NFT gaming sector, which is still maturing. In his expert evaluation, Deutscher classifies Immutable X within category C of his project ranking system, with category A denoting the highest rank.
Optimism (OP)
Deutscher commended Optimism for its rapid accumulation of network effect, which has been instrumental in attracting a significant user base within a short period. He elucidated that Optimism’s transactions per day metrics surpass those of other Layer 2 protocols, indicating its high activity level. Furthermore, Deutscher admired Optimism’s impressive funding of $178.5 million, highlighting its strong investment status. He also emphasized the project’s collaboration with Coinbase and prominent entities’ adoption of their development stack. Considering all these factors, Deutscher classified Optimism in the esteemed category B.
ZkSync (ZkSync)
Deutscher’s analysis encompassed the forthcoming ZkSync protocol, which he primarily scrutinized from a product perspective due to its impending launch. ZkSync’s remarkable funding of over $458 million positioned it as an unparalleled force in the industry. Deutscher noted that virtually every venture capitalist in the crypto space is throwing their support behind ZkSync, evident from its substantial total value locked (TVL) of over $170 million. Consequently, Deutscher classified ZkSync in the highest echelon, category A, firmly convinced that Zk-rollups represent the industry’s future.
Polygon (MATIC)
Deutscher, a prominent figure in the crypto industry, expressed the complexity involved in assessing the ranking of Polygon. Nevertheless, he recognized the recent achievement of the protocol in securing $450 million in funding as a significant step forward. Deutscher also highlighted the project’s encounter with criticism, particularly regarding allegations of depleting a substantial portion of their financial resources. This raised concerns among observers about Polygon’s ability to remain competitive compared to its peers.
Deutscher maintains a positive outlook on Polygon’s performance, acknowledging temporary declines in metrics such as TVL and transactions. However, he emphasizes that Polygon’s significant presence in the gaming industry, as evidenced by the size of its ecosystem, solidifies its position as a major player. Consequently, he has categorized Polygon as a prominent contender in the industry, ranking it in category B.
MetisDAO (METIS)
Deutscher, a prominent figure in the crypto industry, justified the inclusion of Metis in the analysis primarily due to its remarkable social capital. Despite its relatively smaller size, Metis has garnered significant attention and discussion, warranting its consideration among the coins under scrutiny. Deutscher acknowledged the project’s limited funding and lack of substantial support, yet he emphasized that Metis’ substantial percentage gain in price surpasses that of certain competitors within the analyzed set. Employing the protocol’s investment metrics, Deutscher classified Metis in category C.
StarkNet (STRK)
Deutscher, a prominent figure in the crypto industry, has reported that StarkNet has achieved an impressive valuation of $8 billion. This substantial amount leads him to anticipate that their forthcoming airdrops will be among the largest ever witnessed in the crypto space. Deutscher recognizes the immense potential of StarkNet, primarily based on its valuation. However, he does acknowledge that the project’s current performance appears limited, as evidenced by low fundamental metrics such as Total Value Locked (TVL) and transaction volumes on the network. Consequently, he has categorized StarkNet as a B-level project.
Arbitrum (ARB)
Deutscher highlighted the significant increase in Total Value Locked (TVL) on Arbitrum due to many Dapps deploying on its ecosystem. He commended the project’s resilience, as it did not experience a decline in usage even after conducting an AirDrop. Regarding funding, Deutscher regarded Arbitrum’s impressive volume of $123.7 million as a satisfactory return. The esteemed Crypto Banter host classified Arbitrum in the top-tier category A, emphasizing its strong standing in the crypto industry.
