On-Chain Data Reveals Limited Profits for Polygon's L2 Projects

IconCryptoNewsTerminal Staff21 Aug, 2024

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On-Chain Data Reveals Limited Profits for Polygon's L2 Projects

Analysis: On-chain data provider IntoTheBlock has revealed that while Polygon's Layer-2 (L2) network, Base, is processing a significant number of transactions, the profitability of projects built on Base remains underwhelming. According to IntoTheBlock, only one project, TOSHI, has a majority of holders currently experiencing gains. This suggests that many other projects on Base are struggling to achieve profitability. Implications: The limited profitability of Base-based projects highlights the challenges that developers face in building successful projects on L2 networks. It also raises concerns about the long-term viability of Base and other L2 solutions. Conclusion: While Base is processing a substantial volume of transactions, the lack of profitability for many projects built on the network is a cause for concern. Developers may need to explore innovative strategies to improve the profitability of their projects in order to ensure the long-term success of Base and other L2 solutions.

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