Manta Pacific Overtakes Base as Fourth Largest Scaling Solution: L2Beat Report

• Manta Pacific Surpasses Coinbase's Base as Fourth Largest Scaling Solution
• Understanding Layer 2s and Zero-Knowledge Rollup
• L2Beat and DeFiLlama TVL Evaluation
• The Impact of Manta's Paradigm Bridging Program
• Manta Joins the Binance Launchpool

Manta Pacific Surpasses Coinbase's Base as Fourth Largest Scaling Solution

Manta Pacific, Manta Network's native layer 2, has surpassed Coinbase's (COIN) Base, establishing itself as the fourth largest scaling solution according to data sourced from L2Beat. The Total Value Locked (TVL) on Manta Pacific is currently valued at $845 million, surpassing Base's TVL of $753 million. The TVL metric denotes the notional value of tokens deposited in a decentralized finance protocol, thus serving as an indicator of the popularity of DeFi protocols.

Understanding Layer 2s and Zero-Knowledge Rollup

Layer 2s are secondary blockchains developed on the primary/native blockchain to reduce bottlenecks and augment speed. In the previous year, Manta Pacific transitioned to become a zero-knowledge rollup. A zero-knowledge rollup is a secondary network that relies on zero-knowledge proofs, a particular kind of cryptography that has gained significant popularity in 2023's blockchain trends due to the technology's ability to provide fast transaction settlement or finality.

L2Beat and DeFiLlama TVL Evaluation

L2Beat's evaluation of the TVL includes the dollar value of tokens canonically bridged, externally bridged, and natively minted. On the other hand, DeFiLlama only considers assets actively employed in decentralized applications. According to DeFiLlama, Manta and Base are in a tight race for the ninth position, both boasting a TVL of roughly $420 million.

The Impact of Manta's Paradigm Bridging Program

Manta's paradigm bridging program, which debuted in December, appears to have spurred the rapid growth in the TVL. Bridging involves porting assets from one blockchain to another. The program incentivizes users with rewards for bridging ether (ETH) and USDC to the network.

Similar to Ethereum$2,315 -2.42% layer 2 Blast, layer 2 is adopting a strategy that involves ETH and USDC ported to Manta earning a staking yield of 4% to 5%. Depositors can keep the coins locked for 69 days, making them eligible for a future airdrop of MANTA tokens. Additionally, depositors can receive NFT box pieces and have the option to re-stake the staked ETH on Eigen Layer. Blast offered yields on assets bridged to its platform through the liquid staking protocol Lido and lending protocol MakerDAO. Users can also earn rewards for referrals, redeemable in future token airdrops.

Manta Joins the Binance Launchpool

On Monday, Binance announced the inclusion of Manta as the 44th project on the Binance Launchpool$0.251 2.08%. Users can now earn MANTA tokens by staking their BNB$312 -5.65% and FDUSD tokens. The crypto exchange is also planning to list multiple Manta trading pairs on January 18th.

Edited by Jonathan Stoker