State of Scaling Issue 4: How The Merge Impacts Rollups and Bridges
Quick Take
- In this bi-weekly series, we look into some of the most interesting data and developments across the Layer 2 blockchain landscape, from DeFi and bridges to network activity and funding
- The Ethereum Merge is drawing significant attention from the crypto community and many traders are attempting to speculate on the developments pre- and post-Merge
- One of the main implications is that traders will attempt to maximize the amount of Ether held by their private keys pre-Merge, which may include borrowing Ether from alternative ecosystems
- Rollups, bridges and alt L1s will likely see an outflow of Ether from their TVL and liquidity pools and into Ethereum mainnet
- There will likely be a scramble post-Merge where traders would seek to unwind any leveraged positions on alternative ecosystems
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Author: Arnold Toh
