AltLayer: The Killer Modular Narrative Behind New Highs in the Rollup Era?
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AltLayer: The Killer Modular Narrative Behind New Highs in the Rollup Era?
AltLayer's future belongs to a world comprising thousands of rollups, including any general-purpose and application-specific rollups.
Navigating Web3 tides with focused insightsAuthor: Jake Pahor
Translation: Frank, Foresight News
As a rollup-as-a-service platform providing low-barrier rollup launch solutions for DApp teams, AltLayer has recently been expanding its ecosystem rapidly. Today, its token ALT reached an all-time high of 0.66997 USDT (Binance spot data).
This article presents crypto researcher Jake Pahor’s brief report on ALT, offering an in-depth analysis of AltLayer from multiple angles including use cases, mass adoption, project revenue, and tokenomics. The full text has been translated by Foresight News.
1. Overview
AltLayer is a decentralized protocol for launching native and restaked rollups using Optimistic and ZK rollup stacks. Its main products are:
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Restaked Rollups;
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Rollups-as-a-Service;
Both products aim to help projects save time and capital while promoting innovation.
2. Use Cases
Restaked Rollups combine existing rollup solutions (OP Stack, Arbitrum Orbit, ZK Stack, etc.) with enhanced security, decentralization, interoperability, and fast finality by integrating EigenLayer's restaking mechanism into established rollup stacks to leverage their strengths.
AltLayer envisions a world with thousands of rollups—both general-purpose and application-specific—making the creation of these rollups as simple as building with LEGO blocks.
For example:
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AltLayer = Sequencer;
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OP = Stack;
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Celestia = DA;
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Ethereum = Settlement;
3. Mass Adoption
The AltLayer ecosystem is growing rapidly and currently includes notable partners such as Arbitrum, Optimism, Polygon, EigenLayer, Celestia, Espresso, Hyperlane, Injective, and Rabby.
To date, they have launched four public testnets and partnered with over 20 well-known clients.
4. Revenue
ALT demand is driven by three primary mechanisms:
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Collateral: ALT tokens are used alongside restaked assets as collateral;
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Incentives: Operators within the AltLayer ecosystem can earn ALT tokens as rewards for their services;
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Transaction fees: Service fees within the network are paid in ALT;
5. Tokenomics
ALT is the native utility token of AltLayer, used for collateral, governance, protocol incentives, fee payments, and other purposes.
Initially, AltLayer airdropped 3% of the total token supply (300 million ALT) to NFT holders, participants in the Altitude campaign, EigenLayer restakers, and Celestia stakers.
The airdrop claim window for Celestia stakers is now closed. Overall, this was not a large airdrop for most people—staking just 35 TIA was sufficient to qualify.
Current token supply statistics:
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Circulating supply: 1.1 billion;
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Maximum supply: 10 billion;
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Market cap: $545 million;
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FDV: $5 billion;
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Market cap / FDV: 11%;
6. Treasury
Based on current valuation, the AltLayer treasury holds:
61 million ALT = $40 million
These tokens are already unlocked. Additionally, the remaining allocation will linearly vest over the next four years. Once fully vested, their value will exceed $1 billion at current token prices.
7. Governance
Holders of ALT tokens will have the opportunity to vote on governance decisions, although no formal governance structure has been established yet.
According to CertiK, AltLayer performs well in the governance category, demonstrating a relatively high level of decentralization.
8. Team and Investors
AltLayer was founded by Jia Yaoqi in 2021. Over the past few years, it has raised more than $21.6 million from investors including Polychain Capital, Jump Crypto, Breyer Capital, Binance Labs, Hack VC, Balaji, Ryan Selkis, and Gavin Wood.
9. Competitors
AltLayer is at the forefront of a new wave of modular blockchain applications, a category some refer to as "Rollups-as-a-Service".
Its main competitor, Dymension (DYM), recently completed its airdrop and token launch.
10. Risks and Audits
CertiK Security Score: 83.17, placing the project in the top 10% overall and ranking 21st among newly launched projects.
AltLayer stands out due to its market performance, governance practices, and community engagement, but no public code audits have been found to date.
11. Summary
Overall, I am very bullish on the modular blockchain thesis, and I believe AltLayer is well-positioned to benefit from this narrative.
Upcoming catalysts include:
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Growth of the modular narrative;
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Further airdrops;
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Ongoing integrations;
Total weighted score = 7.73
[Disclaimer] Markets involve risk; investment requires caution. This article does not constitute investment advice. Readers should consider whether any opinions, viewpoints, or conclusions expressed herein are suitable for their individual circumstances. Investment decisions based on this information are made at the user's own risk.
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