Metis (METIS) Extends Top Performance Among New L2 Networks

Metis (METIS) is one of the L2 platforms that gained a boost from the 2024 market, lining up among the top scalability solutions, such as Ethereum. METIS is growing by several metrics while other top L2 chains compete for influence. 

After a recent price rally, METIS has been among the leading L2 narratives for the past week. Over the past months, METIS has been getting more mentions and entering the L2 narrative. The network competes for attention among the major L2 projects (Polygon, Arbitrum, and Optimism). The blockchain also grows alongside ZKSnark Era, another relatively new L2 blockchain that is now growing its user base. 

The Metis blockchain benefits from carrying its local version of Aave V3, one of the most active DeFi protocols. On Metis, Aave V3 has grown to around $28.8M, out of a total value locked above $78M. The Metis blockchain also launched its native Hercules DEX, which carries $14.6M in value.

A recent price rally for METIS led to improved mentions and social media sentiment, with the fastest expansion in the past week. 

Source: Dune Analytics

METIS also drew attention by trading above $82, taking only a week to rally from the $56 range. 

Is METIS a New Opportunity for L2 Investments?

The importance of L2 projects grew in 2024, particularly as the largest ones started dealing with substantial trading volumes from Uniswap. METIS is still relatively early to the game, and the token is ranked 161 based on its market capitalization. METIS is still potentially volatile, with only $140K liquidity for 2% slippage on Binance. 

At the same time, METIS is showing some bearish attitudes. The token’s investors have mostly held for more than a year, and about 45% are in the money. 

Source: IntoTheBlock

METIS is on a growth track when it comes to influence, but its price action may be depressed by a mix of large holders and early buyers deciding to take profits. 

Is METIS a VC Token?

One of the telling metrics for METIS is the low float compared to the total token supply. Around 5.6M METIS are in circulation, out of a total of 10M METIS. This is not a true low-float token, though around 4.6M tokens are held in an ecosystem development fund. The token stash will be used gradually over time, and there is little risk of early backers selling to crash the market. 

Also read: Historic Milestone As One Million New Tokens Flood the Crypto Market

Metis DAO has received $1M in funding in one seed round, a far more balanced amount compared to larger VC-backed projects. 

Additionally, the token is held by more than 1M wallets, and is evenly distributed among Western and Eastern markets. The blockchain carries around 20K transactions per day, with spikes in March. 

METIS Aims to Follow Ethereum Model Closely

METIS aims to follow the model of Ethereum, while trying to solve the problem of having both a fast and decentralized blockchain. To that goal, the Metis Andromeda layer carries the Metis Virtual Machine, similar to the Ethereum Virtual Machine (EVM). This allows Metis to target developers, while also onboarding more apps and projects.

BlockChat is one of the affiliated projects of Metis, aiming to use the platform for its Web3 chat and community-building.

Aussie investors looking to get into #BlockChat

You can now buy @Metisl2 on @SwyftxAU and send it directly to Metamask on Andromeda, then all you have to do is visit @netswapofficial to swap your Metis to $BCD…

Swyft X (Metis) > Metamask (Andromeda) > Netswap ($BCD)

Make…

— BlockChat (🟦,💬) (@BlockchatDAO) May 27, 2024

For now, the chief goal of METIS is to scale Ethereum, though the blockchain works at a much lower pace. 

Metis achieves its speed through its Decentralized Sequencer, launched on March 14. The blockchain achieves consensus through some oversight from the Metis Foundation, but only in coordination with selected partners. This ensures enough parties to verify the network in a decentralized way, but without risk of being unable to synchronize, or the risk of Sybill attacks by impersonating block producers.

The past year was formative for the Metis network, which managed to emerge as a complete L2 ecosystem, which now has the task of growing and scaling. Metis DAO is the main decision-making body, though the Metis project was first built as a company, with some centralized control over growth milestones.

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Cryptopolitan reporting by Hristina Vasileva