Huobi Research: How Far is Rollup from Maturity – A Dive into Rollup’s Development Path


The current Ethereum Layer 1 chain is too busy to fulfill most of the demand in the market, and Rollup has become the most feasible solution for scaling. However, Rollup’s performance has not been as stellar as expected – its TVL only occupies around 5% of the market, less than 20 % of projects have been migrated using Rollup, and active addresses account for less than 1%. This data seems to indicate that Rollup has not been broadly accepted by the market. There are four main possible reasons for this (abbreviated below):

  1. Poor user experience
  2. Low capital efficiency
  3. Security
  4. Compatibility issues with EVM

Possible solutions:

  1. more effort needs to be focused on bridging and enabling
    more convenient deposits via exchanges.
  2. Capital efficiency could be enhanced by concentrating liquidity.
  3. Further focus decentralized operations and insertion of forced cash-out rules are desirable.
  4. More R&D on zkEVM.

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