Veteran DeFi developer Kain Warwick reflects on the popularity of Uniswap (UNI), a protocol that has attracted high-risk FOMO-based traders, and claims that FOMO-based L2 scalpers may reach their own “iPhone” on Ethereum. time”.
Why does the crypto part need memecoin on L2?
When the first memecoin aggregates on an Ethereum-based layer 2 network, users will migrate outside of Ethereum (ETH).
Driven by the expectation of huge profits, new users will learn to use the cross-chain bridge to transfer their value to the new chain.
Warwick shared this while commenting on claims that memecoin traders are willing to pay high fees, but did not explore other blockchains such as the L2 Optimism (OP) network, Arbitrum (ARB) or alternative blockchains including Avalanche (AVAX) .
The first meme coin to explode on L2 will change that balance. We’ve seen people learn to use uniswap to fomo into things, I think they’ll learn how to bridge to L2 when some random thing blows up… https://t.co/sPslZvYtWA
— kain.eth (@kaiynne) May 5, 2023
He recalls that some “FOMO”-motivated enthusiasts sought to switch to Uniswap for similar reasons, namely to buy early-stage coins at a cheaper price before listing on mainstream centralized exchanges.
So once memecoins like Pepe (PEPE) start accumulating there, L2 and its bridge to Ethereum (ETH) could lead to the next generation of traders.
Yesterday, amid the excitement surrounding Pepe’s (PEPE) listing on Binance, the Ethereum (ETH) network was nearly unusable due to high fees.
PEPE GAME OVER?
Average transaction fees on the Ethereum (ETH) network surged above $30 yesterday, the highest level since the Terra (LUNA) ecosystem collapsed in early May 2022.
The global crypto community has been gripped by excitement over the new memecoin led by Pepe (PEPE), a coin based on the green frog that launched three weeks ago.
In just 20 days, the increase exceeded 10,000%. However, the listing on Binance could be interpreted as a peak in price action. In the past 24 hours, PEPE has fallen by more than 25% on major exchanges.
PEPE price chart. Source: TradingView
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According to USA Today