METIS, the native cryptocurrency of the layer 2 network Metis, experienced a surge of up to 50% in the past 24 hours, driven by the buzz surrounding a recently revealed grant that is making rounds in the crypto community.
In mid-December, the MetisDAO Foundation, responsible for the development of the Metis network, announced the establishment of an Ecosystem Development Fund (EDF). This fund, consisting of over $360 million (4.6 million METIS), is designed to support and foster development, liquidity, activity, and adoption within the Metis ecosystem.
The launch of EDF reflects the foundation’s commitment to the growth and sustainability of the Metis network. The grant, widely discussed within crypto circles, is reportedly coming to MetisDAO for their decentralized sequencer launch in January and has captivated investors, leading to a surge in METIS value.
A 9-figure grant is coming to @MetisDAO for their decentralized sequencer launch in January.
Here's an overview of the $METIS ecosystem, and the projects positioned to capitalize:@tethysfinance $TETHYS – Perp. DEX & Fork of $GMX tokenomics (You can currently yield >330% APR by…
— Louis Cooper (@LouisCooper_) December 25, 2023
According to Coingecko data, this surge contributed to a 30-day increase of more than 240% in the token’s value. Trading volumes for METIS surged from $2 million at the beginning of December to over $50 million as of Tuesday.
Consequently, the value locked in Metis projects surged to over $500 million from under $100 million just last week, as indicated by the data. According to data on its website, the network has processed over 9.9 million transactions, with the number of blocks recently surpassing the 10 million mark, and the ecosystem boasts over 479,000 wallet addresses.
Metis Plans Fund Distribution to Projects in Q1 2024 Following Decentralized Sequencer Launch
Disbursements from this grant’s fund to various projects are anticipated to commence in the first quarter of 2024, following the introduction of the Metis decentralized sequencer, a technology that disperses transaction-processing nodes globally.
The distribution of funds is planned to prioritize supporting product development, allowing existing Metis projects to enhance features and undergo necessary audits. The fund will focus on diverse areas such as decentralized finance, real-world assets, and NFT startups.
Metis operates as part of a group of layer-2 scaling protocols designed to enhance the speed and cost-effectiveness of transactions on the Ethereum blockchain. Its ecosystem includes various projects and tools aimed at providing efficient solutions within the blockchain space.
As per a blog post, Metis anticipates becoming the first optimistic rollup to decentralize its sequencer, a key component of a layer-2 network that bundles up transactions from users and passes them along to the main Ethereum blockchain.
The timing of the distribution of the newly announced ecosystem funds is scheduled to occur a week after the planned launch of the decentralized sequencer on Metis. Users and investors are eagerly anticipating the impact of these disbursements, with expectations that the rewards will reverberate through applications built on the Metis network.
Metis Ecosystem Projects Experience Substantial Growth Amidst Anticipation, With Tokens Such as MAIA and HERMES Surging by Double Digits
Several ecosystem projects within the Metis network have experienced substantial growth in the wake of this anticipation. Maia’s MAIA token, associated with the staking tool, witnessed a notable surge of 97%. In contrast, Hermes’ HERMES token, linked to the swapping protocol, jumped by an impressive 140% in the past week alone.
The annualized rewards for liquidity pools such as HERMES and METIS have reached 200%, with some riskier trading pairs offering up to 350%, as reported by Hermes.
In addition to these developments, trading volumes on the decentralized perpetual trading protocol Tethys surged to over $18 million in the last 24 hours, marking a substantial increase from an average of under $10 million in previous weeks. This surge in trading activity has resulted in a 60% increase in the prices of TETHYS tokens.
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