As bear markets intensify, layer1 solutions like Solana and layer2 solutions like Polygon are facing more competitors. The number of smart contract networks was not as high as it is today during the 2021 bull market. Now, we see almost every month a new layer1 solution launching its mainnet. This indicates that the next bull market could bring unusual conditions in the multi-chain world.
PancakeSwap News
PancakeSwap, the second-largest decentralized exchange protocol, continues its multi-chain expansion by launching on Linea, a Consensys-supported Ethereum layer2 scaling network. In a recent announcement, PancakeSwap stated that Linea will provide users with lower transaction fees, faster transactions, and enhanced capital efficiency.
Linea, an Ethereum scaling solution, processes transactions on its own network before finalizing/confirming them on the main Ethereum network, which speeds up transactions and reduces fees. Linea is a zk network that launched its mainnet in July.
After the swap and liquidity provision features, PancakeSwap is expected to introduce the farming feature to Linea in the coming months. The farming feature allows users to stake their liquidity provider tokens and earn PancakeSwap’s native CAKE token while holding a position in LP tokens. PancakeSwap is also expected to distribute its first farming offer or Initial Farm Offer (IFO) platform to Linea in the coming months, providing early access to new tokens.
The Future of Multi-Chain in Crypto
PancakeSwap has announced its seventh blockchain today. Initially built on Binance Chain, PancakeSwap now supports Ethereum, Aptos, Polygon zkEVM, zkSync Era, and Arbitrum One. Among these seven altcoins, alternatives like Aptos and Era entered our lives during the bear market. In 2021, we had a world with fewer competitors for networks like Solana and Avalanche. However, now the number of competitors is rapidly increasing even before the context of bull markets.
If alternatives continue to increase at such a rapid pace and crypto adoption does not keep up, we may encounter ghost chains. This could prevent parabolic altcoin surges similar to 2021 during the bull season. The long-term outlook is naturally affected negatively in areas where competition is strong.
