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Crypto Market Falls as Layer2 Sector Drops Over 7%

SoSoValue data shows broad crypto market decline with Layer2 sector down 7.72%, while tokens like HSK and XMR posted gains despite the downturn.

BTC
ETH
XMR

Summary

The crypto market experienced a 3%-8% decline, with Layer2 platforms like Starknet (-13.13%) and zkSync (-10.99%) leading the drop. Bitcoin decreased 3.91% to under $88K, while Ethereum fell 5.17% below $2,900. Despite the losses, HSK (+1.35%) and XMR (+3.55%) saw gains.

Terms & Concepts
  • Layer2: A secondary blockchain framework or protocol built atop an existing blockchain (Layer1) to improve scalability and efficiency.
  • Starknet: A Layer2 scaling solution for Ethereum using zero-knowledge rollups to increase transaction speed.
  • zkSync: A Layer2 Ethereum scaling solution using zero-knowledge proofs to enable faster and cheaper transactions.