The post Which chains are most connected to Ethereum (ETH) based on token flows? appeared on BitcoinEthereumNews.com.

Ethereum (ETH) is the undeniable supporting layer of multiple protocols. Recently, L2 protocols have expanded regarding transactions and fees coming from decentralized apps. Not all L2 are equal, though; some gain much more liquidity based on flows from Ethereum.  The inflows to L2 may be due to bridging and large whales moving their assets to the most active DeFi locations. The topmost chains take up a significant part of that traffic. Lesser projects may boast compatibility and a link to the Ethereum ecosystem but receive a lower share of stablecoins, the ETH, and tokens.  After the recent statement by the US Securities and Exchange Commission that ETH is a commodity and will no longer be investigated as an unregistered security, the move to Layer 2 projects may accelerate. $ETH spot ETFs are about to launch.$ETH is officially a commodity; the SEC has officially capitulated.$ETH is finally scaling via L2s. Coinbase is championing $ETH and its own L2. BlackRock is all in with $BUIDL, the ETH ETF, and soon with tokenization products on ETH.… — AdrianoFeria.eth 🦇🔊 🛡️ (@AdrianoFeria) June 19, 2024 Giving ETH the status of a commodity opens the door for more DeFi activity without worrying about turbulence and liquidations.  ETH also quickly recovered its market price, returning above the $3,500 support level. During the latest market dip, ETH slid to only $3,400 and quickly recovered, supported by the USDT in its ecosystem and demand for tokens on a deflationary network. Both crowd traders and smart money show bullish indicators for Ethereum (ETH).  L2 chains receive the most inflows from Ethereum A clear list of winners has emerged during the 2024 market boom, with a new set of leading L2 solutions. The inflows are self-enforcing as more funds seek out pools, DEX, and liquid protocols.  Ethereum holds $10B in…

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Filed under: News - @ June 19, 2024 12:24 pm