Which layer-2 protocols will outperform in 2022? | The Market Report

Foreign.

Hello, friends, and welcome to another episode of the Market Report. I am your host, Benton, and we are joined again by our resident experts, Jordan Fenisath, Marcel Peckman, and Sam. Sam Borgi. Jordan uses his background in psychology and human behavior to spot all of the emerging trends in the crypto markets. Marcel Pegman applies his 17 years of experience trading derivatives options and futures to the crypto derivatives markets. And Sam Borgi is a business editor at Cointelegraph where he brings a decade of experience in economic analysis and financial market writing. Fellas, are we back? Bitcoin bounce. What's going on this week? How we feeling, guys?

Well, I, personally, I don't understand why everyone is cheering after 10 pump. Sure, we bounce from the cycle low, likely for good, but there's still a good room until you grab some new investors attention and inflow. So I'm not excited.

I think everybody's just happy because everybody was saying that we're going to go down into bear territory. So the market's like, well, let's do the opposite now. Everybody's like, yeah, bull run back on. I don't know, we'll see what happens. Just slow and steady wins the race, folks.

Yeah, overall the trend is still down, right? That's the, the path of least resistance. But the great thing is that we may have seen confirmation at the bottom is in, which is really what everyone is looking for. So any kind of positive price action, we're going to cheer. I was very happy to see it, but we should kind of, you know, pace ourselves and see how the next, I would say 30 to 60 days days play out.

Exactly right. I think my opinion is the bottom is in, folks. So get ready for a, a Wild ride for 2022. Today's show, we are going to bring you the debate of what is the best L2 blockchain today. So things have been reformatted for you for your viewing pleasure. And so each member will have two minutes to walk through their particular blockchain L2 solution and, and present the case. Make the case for why the L2 is the best in the game. We're also going to have Marcel walk us through what's going on in the markets right now. He's going to talk derivatives, he's going to talk futures, what he's seeing, especially on some of the bigger cryptos out there in the market. And don't forget, if you haven't liked and subscribed, go ahead and do that now. Like and subscribe Cointelegraph on YouTube. We're here Tuesdays at 12 o' clock every single week bringing you some of the best knowledge in the game. And we're also going to be giving away a one month subscription this week as we do every week. And so we're going to be hawking the chat, making sure that we see those folks that are chiming in. Make sure you drop your Twitter handle in the chat today as well so that if we are making some good comments, we're going to pick your Twitter handle at the end as one of the winners. And so the first things first that we're going to get into today is the market news rundown. Just going to recap some of the biggest headlines of this week. Then we're going to get things into Marcel segment first followed by Sam, myself and Jordan walking you through our picks and the cross examinations. So Danilo, if you want to jump into our market news rundown, let's go ahead and get this party started.

Foreign.

I think we're all excited to see bitcoin back above 40k. So hopefully we'll remain there for the future weeks, months and years ahead. Marcel is going to jump into some Bitcoin and Ethereum hot tips that you should be looking at when you're assessing your trades in the markets right now. So we're going to hand this over to Marcel. Danilo, run it back.

Okay Ben, so today we're going to focus on Ethereum because for me and I'm going to show you on a chart the $3,000 level seems crucial for Ethereum to keep its momentum. So Danilo, can you share my screen please? So as you can guys see Ethereum has been down trading for 90 days and it's not alone here. It's following bitcoins and major cryptocurrencies. But we can see a clear breakthrough here happened on February 7th. So we are now trading above $3,000 and if this break breakers confirms this, this, this line is going to start working as a support level which is positive for Ethereum. But I, I'm not. Thank you Danielle. I don't like looking solely at price charts. I'm not a technical analyst. I like fundamentalist data big backing it. So on the one hand we've been, we are 4, 40% above the 2.1 thousand dollar low a couple weeks ago but we're still 40 below the all time high. So the glass is really half full here. So what we need to do is check how retail vest retail investors are positioned and the best way to do that is measuring the futures perpetual contrast funding rate. So whenever retail traders are excited, the funding rate will go up. Whenever retail traders are bearish, the funding rate will go below zero. So Danilo, you can share my screen again please. So we've talked about the perpetual contracts funding rate which is the preferred Invest retail traders leverage instrument and we can see here that on October 20th it went above 0.10% which means they were paying 2% per week for longs. So for leverage buyers were paying up to 2% per week. But over the past two months the indicator has been slightly negative or near zero, which means there hasn't been any excitement from retail traders on Ethereum. So we have a kind of bearish data but in fact it shows us that the the sentiment has not yet flipped despite the 40% price increase. So moving on to on chain metrics, I want to see if the Ethereum network is being as used as it was in December or November or if the $40 or $30 network fee is causing investors to move to layer two solutions and competing networks. So the first data I'm going to check is from Coinmetrics and you can see here that right now the Ethereum Network is transacting $6 billion per day. So Ethereum tokens, Stablecoins, everything that is moving on the networks represent $6 billion per day. On Ethereum that compares to November and December, 10 to 12 to $13 billion. So we're 50% below what we had just two or three months ago. So first data from on chain is negative, shows that the Ethereum network is being less used every month. But we need to confirm that whether it's that is specific from some application like oh, Uniswap was the biggest DAP running on Ethereum and now it lost or if it's a generalized thing. So we move to Daprader website and you can check the 30 day activity for the most active dapps on Ethereum and you can see yeah, OpenSea, the NFT marketplace number of active users went up by 40% over the past 30 days. Yeah, that's great. But you can see that all of the other applications on Ethereum including Uniswap, Metamask Swap or Polygons Bridge Sushi Swap, they went down 30% in the number of users. So we have two on. Thank you Danilo. So we have two on chain data showing me that Ethereum network is suffering because of the 30 to $40 network fees. So unless there's a change on those data and retail traders start to get excited about the price, I think they will see $3,000 as a potential bull trap. So we could potentially move below $3,000. That's what on chain data and the charts tell us, tells us.

Interesting. So Marcel, when you're looking at things right now, are you thinking that we have to have retail in order to make the bigger moves upward, especially with ETH and Bitcoin?

Yeah, Bethany, Leverage is a big thing on cryptos. It's always been like this. Retail traders love to leverage cryptos positions and that's what causes the price volatility. So yeah, we could, we could have an institutional investor buying $200 million worth of Ethereum and the price is going to move up 10 to 20%. But if you need the price to raise by 50%, you need a inflow of retail investors and new money coming in the market.

And do you think that the fees on Ethereum are what's, what's really holding retailers back, retail investors back from transacting on the network?

Yeah, Jordan, so two, two things. First, the 30 to $40 transaction fees are causing them to move to layer two or competing networks such as Avalanche Binance, smart chains or whatever. And the institutional investors are getting tired of waiting. Ethereum 2.0, it's being postponed for four years in a row, so they're abandoning Ethereum for other networks.

And Marcel, would you agree that we really haven't had that retail FOMO since probably April of last year? It seems like retail never really came back. I mean, we saw prices recovery into the Q4, but never really that retail driven rally that we saw early last year. Do you think that's still the case?

Sure. Compared to 2017, we haven't seen that huge amount of inflow of retail investors. But on the other hand, we saw an inflow of institutional investors which are much bigger and cause a bigger impact on markets. Microstrategy, Tesla, we had KPMG from Canada where you're located. So the more companies jump in, the more the retail traders will be confident. Well, if big companies are buying, I want to share to myself.

Yeah.

So they follow.

Very good stuff. Marcel, thank you for your insights about what's happening in the market and what you should be on the lookout for. Folks, we appreciate you tuning in today. Make sure you chime in chat, tell us where you are tuning in from around the globe, where you're going to be giving away that one month subscription of Markets Pro that you want to get in on. So drop your Twitter handle in chat if you make a nice little comment today. And we like what we see Then you might be a winner. So just be on the lookout for that. So first things first, we're going to get into this big debate for today. This is the battle of the L2s. Again, these are the explicit personal opinions of each person on this panel today. This is not paid advertising from any of these companies. This is where we actually think that some of these projects will head in 2022. So I am going to hand the floor over to Sam Borgi, who's going to talk to us a little bit about Loop Ring. Danilo, run it back.

All right, let's get this dog and pony show going. If we're talking about top layer two contenders, Loop Ring or lrc, definitely gets my vote. And I think you should really pay attention to it if you're a new investor looking to capitalize on the L2 revolution. Basically, loop Ring is a decentralized exchange protocol that utilizes zero knowledge roll up or ZK roll up to build secure and scalable Dexes and automated market makers. ZK rollup technology means Loop Ring has incredibly fast transaction speed and throughput, achieving roughly a thousand times the bandwidth of Ethereum. Remember, it's not a decentralized exchange. It's an execution system that facilitates Dex trading at lightning speed with near instant validation. So while everyone is focusing on multi chain defi, Loopring has already provided a layer two DeFi application that's growing on Ethereum and that's secured by Ethereum. So if you're a new Investor Looking at L2S, Loopring has a lot of advantages. First of all, it's blockchain agnostic, which means it's an open ended protocol that's not limited just to Ethereum. Loop Ring was also founded back in 2017. You know, for all you crypto OGs were back around then, Loop Ring has been established for a long time now and was implementing ZK roll ups long before they became such an industry buzzword. It also has a Ring Miner Consensus which improves the current Dex environment by giving you the ability to mix and match orders with dissimilar orders. That's huge for liquidity. Blockchain research from Delphi, I'm sure you've heard of them, named Loop Ring as a top L2 contender for the Dex market. According to Delphi, Loop Ring trading is starting to scale and it's leading L2 adoption. By mid 2021, Loop Ring was well ahead of other L2DExes in terms of trading volume according to L2DEx wars on Twitter. Remember, these are L2DEx protocols, not necessarily competition with Uniswap. We're talking about the L2 here in terms of the tokenomics. We've seen 1.3 billion token supply for an L2 that has so much capacity. I think that's wonderful for future price appreciation. And remember, Loop Ring represents the first time in Ethereum that protocol fees are both earned and distributed on L2. So for me, if you're looking for an L2 to invest in, Loop Ring should be top of your list. The top top 70 project. Check it out.

All right, let's. Let's get this. Let's get down to business, boys. We got a lot of questions for you today, Sam, I see Jordan is chomping at the bit. Marcel's chomp of the bit. Which one of you two want to jump in here first?

So you said that, like, 2017 OG the loop rings OG how come it has a lower TVL than both. Both Benton's pick and my pick when he's been around longer. How are they gonna. How are they gonna get more tvl? Come on.

Well, because you're focusing on the wrong type of tvl, Right. We're comparing. If you want to compare Loop Ring, you got to compare it to other L2 dex protocols. When you compare it to, you know, ZK swap, official diversify, leverage A, it tops the list. So you take a look at trading volume and what it's doing for the Ethereum network. That's where your focus should be on. If you want to just take a look at Defi Llama and what the TVL is, that's a separate subject. So it's important to know what the competitors are. It's not necessarily competing necessarily just for tvl. You got to take a look at how it is facilitating Dex trading and execution secured by Ethereum.

Yeah. So I'm gonna jump in here real quick. So, I mean, it's got all the bells and whistles. Okay. It's great. I don't give a rip about how the iPhone is constructed or created, but does it work? And so my question to you is, if I'm an end user just looking to make my life easier, whether that's in default defi or trading or whatever, why should I pick Loop ring as my L2 blockchain for. For this kind of stuff?

Because the trading volumes speak volumes. We're seeing tremendous uptake in growth. It's settled over $500 million in trading volume so far. All of that happened without users paying gas fees, and all secured by Ethereum. That's the whole Point of it is that we're not necessarily going away from Ethereum here. It's all secured by Ethereum, but providing a much more seamless Dex trading experience on Ethereum, that for me is a huge value proposition. You know, without venturing into DGEN territory. Some of these, you know, Dex, is that we don't know what the hell they're doing. This is all on Ethereum. It's your peace of mind is secured in that way.

Is it a one trick pony? Do they only do Dexes?

I mean, you, you want to call it one trick pony? I, I consider it to be focused on what its actual goal is, which is Dex automated marketing.

It's not even a one trick. Funny, because according to dbank.com it has the less than 400 users, active users per day. So it's not even a one trick. It has no trick.

Sorry.

Yeah, well, I, as you can see, Sam is absolutely thrilled about some of those comments. You know, this facial expression just says it himself. He's. He was, he was pretty furious. But I don't know, man. I think in my opinion, like, Loop Ring, it sounds like they're doing cool stuff, but like, you know, at the end of the day, you know, does it work? And, and can I, can I get on there and make my life easier there? You absolutely could. I think I'll give you your final rebuttal here.

Yeah, no, I think, you know, the fix is in. I think my Internet connection was cut. I think so. No, I think I've made my face. You see the suppression that's happening from these, you know, bigger L2 protocols. They want to keep you away from this protocol. So just invest, think about.

I see.

Good go, Sam. We appreciate you sharing your insights about Loop Ring. Interesting project. I have to say, shout out to all the, the folks I've been watching for multiple weeks, friend of the show, Luciana Cal Toro. We have tons of folks I've seen in here all over again and we appreciate you joining the market report. Sam has stated the case for Loop Ring. I will now state the case for Polygon Network. And so, Danilo, why don't we jump into my segment where I'm going to win the hearts and minds of all the viewers today. All right, folks, it's time for that layer two solution that's going to make you feel good when you go to bed at night, and that is Polygon Network. Rather than being just a simple solution, Polygon is intended to be an entire platform for launching interoperable blockchains. So this means that not only does it involve the network for which it was built on Ethereum, it also has room for other blockchains. So we're talking expansion folks, not just one narrow lane. Not to mention Polygon has a transaction throughput of 65,000 transactions. I think we talked about Solana and Velos previously that were upwards of 80,000. So you're talking high transaction volume speed for this L2 solution which most other chains on L2 also provide. Now the proof is in the pudding here folks. Polygon has recorded a billion transactions last year with just over 2.6 million monthly active users, generating 3 million transactions per day. That is a lot of transactions folks, which it also claims that more than double the volume of Ethereum. So even though Polygon is building kind of around the Ethereum network. Danilo, if you wouldn't mind just pulling up my screen for just a second. I want to give, I want to give a picture here. And so if this in the middle here, Ethereum, Polygon is building around this base layer of L1 Ethereum. And so it's instituting ZK rollups, optimistic rollups, enterprise chains. It's got Polygon, plasma chain, Polygon POS stand own sidechains. And so it's not only just one little narrow lane, it is encompassing the entire Ethereum ecosystem. In my opinion. You gotta go to where the money is and that is where everything is right now is in Ethereum. So if you're building around that ecosystem, I think that is going to be the move for the future. And why Polygon will outperform any other L2 chain in 2022. I'm going to drop the mic right there.

So like there's been a lot of issues with Polygon lately and there's some like stealth edits to their code like don't talk about in the background. This is a really serious problem that we just fixed. How many more of those little like surprises are we going to get with this project, man?

You know, it's, it's, it's a crypto space man. This is a new evolving technology. There's going to be errors, there's going to be missteps. But you know, in my opinion it's all about how you handle those missteps. And you know, Polygon has great priority, they have great marketing and as you know, marketing minded person. So you know, I can appreciate how they've handled and addressed these things. And even though they're going to probably encompass many of these issues in the future, just like any other Blockchain.

Well.

So, Benton, what exactly is going to happen to Polygon after or when Ethereum 2.0 is launched?

That's a great question, Marcel, and I'm so happy that you asked that, because had I been on the Polygon dev team, I might be able to give you a little bit more insights to that. So, because Polygon is proof of stake, currently Ethereum is gonna be moving from proof of work to proof of stake. I don't know. I mean, like, if I had to guess, it's just like, they're gonna become even sweeter. It's gonna be POS times two, you know, like, I don't know.

Well, let's just say POS stands for many other things as well, just put it that way. But so listen, the reason why we're here, Benton, is we want to look at, you know, gains. We want to make money, right? Okay. If I look at Polygon, I take a look at its circulating supply, I take a look at all the. The gains that were made in the past year. And I'm an investor, and I want to get in on this. Am I really going to purchase this thing at 2 buck? Like, is there really much more significant gains to be had for this type of project? It's been pumped so heavily over the past year. It's got you all riled up and excited. But as a new investor, is this really going to make me that type of return?

Yeah, I'm going to tell you why. Sam, let's pull up the chart here. So we're looking at a daily chart here. You can see kind of what I've placed as a little bit of a buy zone here. Just under two bucks hovering around that 150 mark. So for me, I think yes, if I'm looking at this as an investment, I also need to understand what's going on with the ecosystem. And so when I'm looking at a chart like this, you can see my. The arrow of my projected, you know, of price of Polygon here did not necessarily hit, but we saw the inverse head and shoulders here, down here, and we saw the price pump a little bit weeks after. I think there's a lot of room for Polygon to continue to grow. I think there's maybe a ceiling probably closer to $3 right now in the short term. But if I'm looking this at as an investment, I think I'd wait for another dip closer to that, maybe 150, 160 range to potentially get in and then ride that back up to a $2 $2 sense, but looking at that ceiling, about $3. And so when I'm looking at things like that, Polygon, for example, is how I would, I would assess that.

Did we just lose Banton? Oh, there he is. There was a couple weeks ago when, like, I couldn't do a transaction on Polygon. Like, it was just.

Yeah.

What was up with that, man? How are we gonna have to worry about that?

Yeah, so when, when I talked to, you know, the Polygon team, they were just like, hey, listen, man, we got a lot of stuff going on the back end, just like every other blockchain. And they were just like, yeah, we're, we're gonna, we're gonna put a halt on things. So, you know, I think at the end of the day it was like, stuff happens, Jordan. Stuff happens. Blockchains get congested. Okay. It's not perfect. All right? If you're looking for the perfect blockchain, you're not gonna find it.

That's true. Except for Metis, of course.

But, well, if you want an L2, you know, we got you on looper in here, right?

So you guys are, you know, really, really pitching hard today. Those are great questions. Any further questions about Polygon today? Okay. All right, well, that was a great, great, uh, cross examination there. I'm gonna hand this over to Jordan and he's going to talk to us about, uh, a fairly new L2 solution, uh, called Metis. So, Danilo, take us away.

All right? The project I chose to outperform other layer two protocols in 2022 is Metisdao, an optimistic rollup protocol designed to help businesses and other organizations migrate from Web 2.0 to Web 3.0. The reason I chose Metis as opposed to other viable options is due to the protocol's focus on helping new or migrated projects establish a DAO structure, decentralized autonomous organization structure on the in the framework upon launch, which enables a host of other capabilities and helps establish the project as a community oriented one. One interesting feature on the Metis protocol is the creation of the NFT for each unique user that tracks their activity and collaborations to provide a metric known as the reputation power, which is to help establish a level of trust for that specific user. In the anonymous world of the Internet, where businesses are interested parties need to know if they can trust another user they are interacting with. With RP helps to provide good actors with a way to prove their trustworthiness and attract collaborators. This can be applied to create Web 3.0 versions of all manner of platforms, including Reddit, like social platforms, open Source developer communities, NFT platforms, gaming communities, freelancer communities, DEFI protocols, and crowdfunding platforms like GoFundMe that aren't beholden to mainstream financial institutions or oppressive moves by the government. Metis also enables the creation of decentralized autonomous companies, or dax, which are designed to function as operating companies and allow for payroll, hr, financing, project management and organizational roles along with the typical capabilities of DAOs. The Andromeda 2 layer 2 mainnet for Metisdale launched on November 19 and the protocol has seen tremendous growth in the number of projects that have launched on its network, which have helped increase the total value locked on Metis to 546 million, making it the third ranked layer 2 protocol by total value, locked behind Arbitrum and DYDX according to L2B. Overall, as mainstream society and businesses look to begin the migration to Web3, Metisdao offers the best framework to getting an organization or community up and running on the blockchain, while also including built in mechanisms for trust with optimistic governments and reputational power on chain tools designed to help facilitate collaboration and the ability to process transactions quickly and inexpensive, inexpensively.

That was awesome.

Can we start a punching Benton.

More so go ahead.

Okay, I'll start light. So it looks to me that Matis Dao right now is semi centralized. Yeah, I heard that there's a Matthews Ranger system shadow for sometime in 2022. But why should investors trust their tokens to Medisdao right now if it's centralized?

Well, everything released or listed today has kind of been centralized. Whether it's Polygon who does their background back knowledge like code changes or I don't even know what's going on with looping. I don't know, to be honest with that part. But yeah, it's early. It just launched in November 19, but it started off it's Metis Dow from the beginning. It's focused on becoming a decentralized autonomous organization. So is is built into community governance features. So if you're looking to get in early on a good Layer two program that already is thinking about community oriented, giving the power back to the people, this DOW is a really good choice in my opinion.

Well, is it just like a marketing ploy? It's just like, oh, we're into a DAO and everyone's gonna, you know, have their vote?

No, see, this is like again, I, I think I saw I'm gonna jump ahead on you Sam, and I saw one of your questions over there with the whole Web3 thing. So right now everything exists. Everything exists in Web2 on the Internet, including all these businesses, and they're going to be migrating Web3. What is Web3? It's, it's including blockchain technology basically with the Internet. We're upgrading the Internet by including blockchain technology. This is trying to incorporate it so that businesses and companies right off the bat can come in and establish their corporation, their entity, have collaborators within their ecosystem that can interact with each other and not just have like a basic platform or basic blockchain platform. It's focused to create communities and projects that have large communities and yeah, is this true? Advisory board and somebody that coded with metallic is the, is behind the project. Like this project has got some serious backing.

Well, I don't care whose mom is on the project. I mean for me this whole web3 stuff is very gimmicky. It's a buzzword. No one really knows what it is. If you're going to invest in a project that talks about Web3 and they don't actually explain what Web3 is, that's your first, you know, red flag. So have they even tried to actually explain what they mean by web3 or is it just as vague as it usually is?

Jordan, you know, that's a very specific question. I have to go look at their documentation to see if they've outlined what Web3 providing what my definition of Web3 is and how this, this platform incorporates that into migrating everything from the current siloed nature of the Internet with no security to this blockchain based thing in the future that's developing.

I mean, so isn't there just going to be this giant web of L2s that just coexist in the future or are projects possibly like you know, gonna fizzle out over time?

I think they'll fizzle out of time just like everything in the, in the normal world, a 50 of businesses fail within their first year. So 50 of like crypto products will fail easily. Easily, easily.

Those projects like Loop Ring or Metis that haven't been around as long have a higher chance of failure as opposed to Polygon. Is that what you're saying?

I think newer emerging ones that actually that develop products, products that fit what the, the society needs to help it evolve into web3 are the ones that are going to get picked up. But you know, okay, long run. Okay, I'll go back to what I said a couple of these shows ago. Like whatever chain is eventually the chain in the future, it ain't going to need layer twos. It's going to be one layer that can do everything that A blockchain should do and then we might be getting somewhere, which is why it probably doesn't exist yet, in my opinion. But all these other ones are kind of getting us closer to that goal and maybe one of them will morph into that. We'll see what happens in the future. But metisdao is help businesses migrate into the future blockchain based web interactions.

Give me one reason why I should and should look at Metis as an investment.

It's a really low token supply. Lots of promise coming up in the future and it's offering a very good use case for businesses in society.

Three reasons, but I'll take one vote. All right, any. Any further questions for this cross examination today, folks?

I'm done.

Say about Web3 that we depend. The Internet depends relies on Amazon web servers and Oracles and the large data centers. So I agree with Elon Musk, I agree with the Twitter guide with the large bird, because we cannot have web3 for good until we have a really decentralized Internet back end which doesn't exist right now. So for me that's just blah, blah, blah.

Excellent insights, Marcel, friend of the show. Luciana, chime me in. I don't care whose mom is on the project. Quoting Sandborg. That was great. That was a great line. Awesome. All right, so the next thing we're going to jump into today, make sure you're voting on the poll. The poll is live. Make sure you vote Polygon, Metis or Loop Ring. And today I think it looks like we have quite a few folks in support of Metis in chat today. Jordan, I think maybe dropped by their Discord community. I don't know. Uh, make sure you vote in the poll. That's going to be live right now. So make sure you send us any kind of questions that you have. Marcel, do you want to say something? No. Okay, we're gonna jump into Markets Pro next. I'm gonna show you the top two movers from this week. Let's go ahead and jump in. Foreign. Folks. Newsquakes are automated alerts that instantly notify users when market moving events happen. That's what happened this week with Sandbox. Did you see it? Danilo, can you please pull up this chart? You. You all are going to be shocked at what happened with Sandbox this week. So on January 4, an announcement came in that the token would be listed on Kraken. Thanks to that Newsquake alert, Markets Pro subscribers were able to spot this move very quickly. So sans price popped up immediately from $3.52 to $3.78 in 12 hours. When that initial momentum began to fade, a market wide bullish trend kicked in. And in recent news sand has bounced harder than most other altcoins, climbing all the way up to 466 in the next one and a half days. And so if you're able to catch this newsquake all the way up, you were able to look at a 32 game that is big time. You love to see that in these markets, especially with this relief bounce happening as of recent. So our next token that we were watching this week using the Marcus Pro platform was quant trading under the ticker qnt. And for this particular point coin it set off some alerts on the Vortex score. And if you're not familiar with the Vortex score, it's comparison between its current market and social conditions and those in the past. So an 80 score indicates confidently bullish and conversely a low score indicates a historically bearish condition. So on February 5th and 6th, QNT supported a stretch of vortex scores in the high 70s and low 80s for more than a day. And so when we saw Q and T take off it shot up from 134 all the way up to $158. So we see that green line, that's a Vortex score. Hit that 84. Love to see it. You see that white trend price line that moved up shortly thereafter. That's why you get Markets Pro. I love using this platform. I wish everyone could use it. And that's why we're going to be giving away that one month subscription today so that you can start using getting on and on trades like this. If you haven't dropped your Twitter handle in chat, go ahead and do so now. We've been watching those folks making some good comments in there. I think we have a few runners right now for for the top comments of the day. And so let's go ahead and do a Like and subscribe, right everyone like and subscribe. Coin, Telegraph, YouTube, make sure you're here. Tuesdays 12pm and we need to pick our winner for the giveaway today. Let's see who did we spot in chat today that we want to pick as our winner, guys?

Well they gotta drop their Twitter handle. Deepak over there dropping it quick. I've seen him drop it a couple of times.

Drop those Twitter handle folks. We're gonna pick winners for the markets pro subscription so make sure you drop it in there and then I think our poll is gonna end soon. Adrian, how much time do we have left on the poll? We got A few minutes. All right. I can't see it live here, but I'm assuming Polygon is winning.

Like, like, I want to address like, Marcel. Like, I think what, what's, what's going on now is that nobody really knows what's happening in the whole system, like our whole planet. And the Internet is evolving and we like it. I think we're trying to, like, like, I always joke about trying to fix Ethereum as a running car on the freeway and they're trying to change one of the wheels. We're trying to like upgrade the Internet while 4 billion people around the world are using the Internet. And it's just like it's going to be a complicated S show until like the technology really gets hammered out. And that's why I like these debates. I like to see so many viable Layer two projects out there because it actually shows the, the desire for developers and people out there to actually solve this problem and improve what we're doing as humans and how we interact across the world. So I know it's kind of a show and it's all over the place, but it's a fun journey in my opinion.

I understand your point, but when you have a TVL of $10 billion or more, you don't want to do those kind of changes. And Ethereum right Now has over $100 billion on TVL. So the best way in my opinion, is do what Bitcoin is doing. So create those additional things on layer 2 and the, the base one layer doesn't change at all, so it's back backward compatible. So I think Ethereum is kind of taking a huge risk by doing that, by doing the change as we go. And that's why I see Avalanche and Phantom and Polygon and so many Layer two solutions and competing chains gaining ground because people want safety, they don't want doubts. When we're talking about 10 billion TVL.

Do you think that's why like Cardano? I know everybody makes fun of Cardano, but that's why they took their approach of like, we're gonna, we're not gonna have anything on it until we get it figured out.

No, I think they have no clue what, what they are doing and they're just making up as, as they go.

Folks, the poll, the poll has concluded and the shocking winner today come from behind. Winner Polygon. It was a no brainer. It was a no brainer. Everyone watching at home knew it. We knew it. I knew it. Everyone knew it. Polygon. Polygon took this one home today. 56 followed up by loop ring 28 metis. Dow came in hot in third place today. Jordan, I think you made a strong case. Same thing. Sam, I thought you made a strong case for loop ring, but I think Polygon, the people have spoken. Polygon seems to be the L2 for 2022. Any closing thoughts here? I'm going to hand this over. Sam, closing thoughts for today.

Simply for me. I'm optimistic about what's happening in the, in the from a price perspective over the last week or so. Again, if you're into bitcoin and you're hodling, don't make any rash moves. You know, we're off the lows, things are looking good, but it's going to take some time for the market structure to recover. So overall I'm still quite optimistic about 2022, but again, slow and steady wins the race. And let's not, let's not panic.

Marcel, closing thoughts.

I, I have nothing to add if you heard Sam, if you didn't just go back a minute and reheard what he just said. Wise words.

Jordan, closing thoughts for today.

Yeah, I still think I'm gonna go with the whole five year cycle and think that we're still, we're not, we're finishing up the cycle that we started last year and we, I, I'm banking on a one good blow off top in this year and then like bear market boom. But yeah, so take your profits if that does happen. If not, hopefully it just extends on longer and then I'll be happy with that too. But blow off top to bear market, let's go.

Who has profits around here? Man, I'm down 20.

Exactly. Well, optimistic bounce. Let's see what happens in the weeks ahead. I am patiently and cautiously optimistic that we will get to higher levels in the months ahead. Winner for today, one month, Markets Pro is going to be Deepak. Deepak, thanks for chiming in today. You are going to be our winner. Make sure I saw your Twitter handle in here a couple times. You were chiming in today. Love to see it. Love to see folks interacting. We're there for that. We love that stuff. So, Deepak, we're sending you a message via Twitter to give you that one month subscription to Markets Pro. And if you wouldn't mind just telling people how do you like it because Markets Pro is the premier trading platform of Cointelegraph. We love to see it. That's going to do it for today. We hope you join us for next week. This is a fun debate. L2s. You're going to want to stay in tuned for what we have going on for our next debate. We love you all. Thank you all for joining. Until next time, over and out.

It.