Kupus

How Increased Layer 1 Usage Affects Layer 2

Higher Operating Costs:

Rising Layer 1 fees directly increase the cost of posting transaction data (e.g., rollups), which can be passed on to Layer 2 users.

Security Benefits:

A robust, decentralized Layer 1 strengthens the security foundation that Layer 2 solutions rely on, boosting user trust.

Incentivizes Scaling Upgrades:

High demand drives development of Layer 1 improvements like danksharding, designed to reduce data storage costs and support massive Layer 2 scalability.

How Increased Layer 2 Usage Affects Layer 1

Increased Settlement Demand:

As Layer 2 usage grows, more transactions are batched and settled on Layer 1, increasing data load and potentially raising gas fees during peak times.

Congestion Risk:

Despite offloading execution, Layer 1 must store transaction data, which can still cause congestion—e.g., Ethereum gas fees spiked during memecoin surges, affecting Layer 2 costs.

Enhanced Value Accrual:

Higher Layer 2 activity reinforces Layer 1’s role as a secure settlement layer, increasing demand for its native token (e.g., ETH for security and fees).

$RESOLV if many square folk say long then it's probably short

$OM was this just throwing a bait

$ALLO omg 📉

$BOB everyone is already short so go short while market is in downtrend

This sounds like I am an insider but no, I am losing here. I actually want it to go up.

What are perpetual futures contracts funding fees and funding rates?
Why is the funding rate sometimes as low as 0.00001% and sometimes as high as 2 00%?
Why is it sometimes positive and sometimes negative?
Why does the charging frequency sometimes change from every 4 hours to every 1 hour?
In short, perpetual futures contract funding rate and funding fees are designed to stabilize the market to avoid systemic failure that can be caused by high volatility and / or too great deviation between spot and futures market prices of the trading symbol.
Funding rate can be positive or negative depending on the long to short ratio. if the majority of traders have open long positions, the funding rate will be positive and if, however, the majority of traders have open short positions, the funding rate will be negative. Additionally, funding rate can also remain the same if the deviation in price between the spot and futures price is too great. Generally, positive or negative funding rate is decided by either price deviation or long to short ratio.
Funding rate amount (percentage) is calculated based on the deviation or difference between spot and futures price of the trading symbol but the actual amount that is charged in BNFCR or BNB depends on the size of your position.
The frequency of charging funding fee can sometimes change from every 4 hours to every 1 hour when the trading symbol long to short ratio is heavily one sided and symbol has low liquidity and / or has become volatile (when the price swings are too great). Additionally it can also change to because of a too great deviation between spot market and futures price.
The purpose of that mechanism is to have traders close their positions and / or switch to opposite direction positions
Conclusion:
Market decides what will change and market is traders.
Details can be read in screenshots. ⬇️
#manageyourrisk #TradeResponsibly PIPPIN , H , OM , RESOLV , ASTER , SUI , ETH , SOL

$DASH It was called "darkcoin" back in its early days because it was used to purchase stuff from "dark web" and was almost banned forever but later they changed its name to digital cash and announced that it will not be used as a form of payment in "dark web" services anymore. However, due to its privacy preserving nature, the transactions cannot be tracked and thus raising concerns about it being used for transactions in criminal operations which is why it might be banned in some countries. EU is already in process of making such decisions considering privacy coins in case crypto gets adopted more broadly.

$PIPPIN these artificial pumping schemes often end up in great differences in spot and futures prices between various exchanges and there is huge potential for a great dump after price correction is complete. I'd like to suggest holders to take profits and sell spot holdings and buy low until next artificial pump.

$FOLKS I assume it wants down to 5 or 7

actually , they are selling probably.... the transactions show negative trading volume on 5m, 1h, 6h and 24h
be cautious however, because anything can happen

$PIPPIN they are again at it watch out your late short positions

$PIPPIN manage your risk. use 5x leverage maximum

$PIPPIN sell / short

$PIPPIN I would recommend traders to avoid trading pippin and BEAT because of the volatility swings and too great risk. You decide whatever you want but the consequences might be severe. #TradeResponsibly #managerisk

No need for an intro..

xrp is better than beat however you put it

it is a meme coin, don't expect anything rational about it. it can double up or break down at any random moment

$BEAT dealer is still not tired, he is going for $4.00 and maybe $5.00 after cooldown