The Ethereum-based derivatives platform Synthetix has announced its return to the mainnet. Some analysts believe that the derivatives market, which migrated to Layer 2 due to scalability controversies and network congestion, may return to its original stage.
Synthetix founder Kane Warwick stated in an interview with CoinTelegraph on the 18th: "During the heyday of decentralized exchanges for perpetual contracts, the Ethereum mainnet was too congested." But he added: "Now, the environment is once again suitable for operation." He explained: "Previously, the lack of a decent Perp DEX on Layer 1 was somewhat strange. Thanks to decreased demand and improvements in scaling solutions, we can now approach it again."
Synthetix is a pioneer in Ethereum derivatives trading, having provided liquidity for many decentralized trading platforms in its early days. However, as the Ethereum network became congested due to the NFT craze and DeFi growth, issues of transaction fees and speed led to a slowdown in investor activity, and its use cases have also shifted to Layer 2.
However, recently, Ethereum has shown significant changes in scalability while continuing to upgrade. In particular, lowering data processing costs through EIP-4844 (Danksharding) and the development of the Rollup ecosystem are becoming factors that may enhance the practical use cases of Layer 1.
Kain Warwick emphasized at the end of the interview: "Ethereum Layer 1 is still the best place to operate Perp DEX, as no Layer 2 can match it in terms of reliability, liquidity, and security."
The return of Synthetix to the mainnet, from the perspective of balancing stability and cost-effectiveness, signals a new market landscape between Layer 1 and Layer 2. As many derivatives platforms weigh profitability against data processing, some predict that if a well-functioning Perp DEX can appear on the mainnet, there may be a resurgence centered around Ethereum.
Article Summary by TokenPost.ai
🔎 Market Interpretation
The decision of Synthetix indicates that the Ethereum mainnet is rising again as a competitive trading infrastructure. This may trigger a phenomenon of user return that has stagnated since NFTs and DeFi, while also suggesting the possibility of new derivatives DEX entering the market.
💡 Strategic Points
The discussion on the scalability of Ethereum Layer 1 is moving from research to practical use cases. If the demand for Perp DEX trading gathers again, the value of related base tokens may also face re-evaluation.
📘 Terminology Explanation
Perp DEX: A decentralized exchange for trading perpetual contracts, unlike centralized exchanges, it does not directly hold assets but allows for derivatives trading on-chain.
Layer 1: Refers to the foundational blockchain, with the Ethereum mainnet being a typical representative. Layer 2 is an independent structure that supplements the transaction speed and scalability of this underlying chain.
TP AI Notes
This article uses a language model based on TokenPost.ai for summarization. The main content of the text may be omitted or inconsistent with the facts.
