Pantera Capital Says One Ethereum Layer-2 ‘High on the List’ of New Crypto Opportunities
Digital assets-focused investment firm Pantera Capital thinks one Ethereum (ETH) layer-2 scaling solution should sit “high on the list” for fundamentals-focused investors looking for projects that have made recent traction in the crypto sector.
Cosmo Jiang, a portfolio manager at Pantera, notes in a new analysis that Arbitrum (ARB) has taken “meaningful market share” in terms of transactions in the past year and has been one of the few chains to demonstrate transaction growth in the ongoing bear market.
Jiang argues that Arbitrum has effectively contributed to all of the incremental growth in the Ethereum ecosystem this year.
“Arbitrum’s network flywheel is spinning. Based on our field research, it is evident that developers are attracted to the increasing usage and user base that exists on Arbitrum. This is the positive network flywheel: more users translates into more developers being interested in creating new applications on Arbitrum, which in return attracts more users.”
The portfolio manager also notes that Arbitrum is a profitable protocol that has a market capitalization similar to other layer-1s and layer-2s which only see a fraction of its usage and profit.
ARB is trading around $0.8104 at time of writing. The 42nd-ranked crypto asset by market cap is down 0.86% in the past 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Pantera Capital Says One Ethereum Layer-2 ‘High on the List’ of New Crypto Opportunities appeared first on The Daily Hodl.
