Zircuit, a Layer 2 network built on Ethereum, has achieved a remarkable milestone by surpassing $1 billion in pre-mainnet deposits in just six weeks since its launch. The project has attracted a total of 333,839 Ether, including ETH, liquid staking tokens (LSTs), and restaking tokens (LRTs), equivalent to approximately $1.11 billion based on current prices. In addition, the network holds over $45.9 million worth of stablecoins, mainly consisting of Ethena’s yield-bearing USDe token.
One of Zircuit’s key features is its ability to enable ETH staking derivatives. The project introduced a points campaign on February 24, allowing users to stake ETH and Ether staking derivatives in exchange for Zircuit Points. These points not only offer the potential for a future airdrop but also provide additional yield and points based on the deposited assets.
To further incentivize development on its platform, Zircuit launched the “Build to Earn” program on March 27. This program rewards developers for building infrastructure, tools, and decentralized applications (dApps) on Zircuit’s testnet, which was launched in November. Importantly, users can withdraw their pre-mainnet deposits from Zircuit at any time.
Zircuit operates as a hybrid rollup, combining zero-knowledge proofs with optimistic infrastructure. It is fully compatible with the Ethereum Virtual Machine (EVM), allowing existing applications supporting EVM execution to seamlessly migrate their code onto the Zircuit network. The network’s ability to deliver faster transactions without high fees is achieved through compression techniques.
The project has received grants from the Ethereum Foundation to support its research on rollup compression and scaling cryptography, highlighting its commitment to improving Ethereum’s scalability and efficiency.
Zircuit’s rapid growth in the pre-mainnet phase is reminiscent of Blast, another popular Layer 2 network. Blast, developed by the team behind Blur, a leading NFT marketplace, became the third-largest Layer 2 network with a total value locked (TVL) exceeding $2 billion upon its mainnet launch on February 29. Blast attracted significant deposits by offering points in addition to native rewards from yield-bearing assets, even before releasing any code.
The Layer 2 ecosystem on Ethereum has experienced significant expansion over the past year and a half, with a TVL surpassing $36.7 billion. Transaction activity on Layer 2 networks surpassed that of the Ethereum mainnet in October last year, with these networks now processing five times as many transactions as the mainnet. Arbitrum, an Ethereum-based Layer 2 network, currently holds a market share of 49.17% among Layer 2 networks, surpassing Optimism Mainnet, which has a market share of 28.85%.
Zircuit is a prime example of the continued growth in the Layer 2 space, with its TVL consistently increasing since October last year. It has risen by approximately 50%, from $1.66 billion to the current value of $2.51 billion, according to data from DeFi tracking site DefiLlama. The future looks promising for Layer 2 networks as they continue to enhance the scalability and efficiency of the Ethereum network.
