Why Metis is the Cheapest L2 Chain?

In the ever-expanding landscape of blockchain technology, scalability and efficiency remain key challenges. And this is even more important in the zk-rollup L2 sector.

That’s why in this article, we’ll talk about Metis. And how it aims to address these issues by offering a scalable and cost-effective platform for decentralized applications (dApps). Also,  we will explore the use cases of Metis, its latest developments and news, and its growing adoption within the blockchain ecosystem.

What is Metis?

Metis is a low-cost EVM-compatible optimistic roll-up built on Andromeda. In terms of TVL, It has fallen like many projects and stays within the $2x – $4x million range. ATH TVL is around $466 million. Nowadays, its TVL is $35.1 million.

Assuming 7,500 swaps per day with current gas fees, Metis users are saving:

$629,625/year if compared to Optimism
$903,375/year if compared to Arbitrum
$1,669,875/year if compared to ZK Sync
$1,560,375/year if compared to StarkNet pic.twitter.com/xNvV5WKm9G

— Metis 🌿 (@MetisDAO) July 12, 2023

Its focus is on ease of development and use with POLIS middleware, with better decentralization (more nodes and sequencers) and scalability. Normal blockchain tools like explorers, bridges, etc are available.

METIS Tokenomics and Use Cases

METIS is its native token, the current price is at $17.85, the Marketcap is $77.5 million (#313), and Circ/Max supply – 44%.

• Early investors are currently up 3.7x
• For token allocation, only 15% is for liquidity and community. Much of it is for investors. Almost half the supply is pre-mined.
• Note tokenomics. Huge releases all the way until Jul 23, when most early investors’ emissions taper off. Then, transaction mining balloons are here.

Also, METIS has some products other than the L2 chain:

• NFT file Storage/DAC (companies)
• Builder Mining/POLIS (No-code)
• BM: 30% of transactional revenue goes back to dApps.
• Decentralized Autonomous Companies (DAC): DAOs but with business functions like payroll, marketing, insurance, etc.

A Web3 Economy will even the playfield at a global scale⚖️

It will allow individuals, all around the world, to hold the keys to their own future🔑🌎 https://t.co/MfotwB5hUP

— Metis 🌿 (@MetisDAO) July 4, 2023

Team & VCs

• Team strength is ok with 21 full-time members.
  • Note: Vitalik’s mom is DAC manager.
• Investors are VCs during seed but only some are well-known like Parsiq, and OKEX (which raised only $5 million)

Ecosystem

The # of dApps on METIS hasn’t really increased by a lot recently. It includes AAVE, Chainlink, Sushiswap, Frontier, and OKX, among many others. Also, it has a $100 million ecosystem fund. But, the number of dApps has pretty much stayed stagnant since 2022, with TVL dropping.

It’s looking to improve its technology further by adopting Hybrid Roll-ups in 2023 (Scalability of Optimistic with security of ZK roll-ups). So, METIS could also catch on to the L2 narrative. In terms of fees, features, or technology, it has more compared to other L2s, but it’s not yet showing in TVL or adoption.

Supply caps for ETH and METIS on @AaveAave have been DOUBLED!

This is a key step as we keep preparing for [redacted]. We expect supply caps to be raised again in the following weeks as liquidity keeps growing on the network.

New supply caps: 100 ETH, and 15,000 METIS⚡ pic.twitter.com/DKdy0IpBYZ

— Metis 🌿 (@MetisDAO) July 10, 2023

Conclusions

This has been a small review of a project, where the main feature is the very low fees. However, it is a project that is not showing very fast growth despite having good partners in its ecosystem.

On the other hand, it is important to say that its low transfer fees are likely to be very low (according to its Twitter post, its fees are 90% less than Loopring) since its adoption is very low.

Therefore, I think it is best to keep this project on your watchlist and watch its development.

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