Market Cap Below Funding: The Strange Case of L2 Projects
Some prominent Layer 2 (L2) projects, despite raising substantial capital, are currently trading at market caps lower than their total funding, raising questions about their valuation.
The zkSync project, having raised approximately $450 million, currently has a market cap of only about $260 million. Similarly, Starknet, with over $250 million in funding, is trading at a market cap below $500 million. This significant gap between raised capital and market cap may indicate investor uncertainty regarding tokenomics, market adoption, or project performance.
Some prominent Layer 2 (L2) projects, despite raising substantial capital, are currently trading at market caps lower than their total funding, raising questions about their valuation.
The zkSync project, having raised approximately $450 million, currently has a market cap of only about $260 million. Similarly, Starknet, with over $250 million in funding, is trading at a market cap below $500 million. This significant gap between raised capital and market cap may indicate investor uncertainty regarding tokenomics, market adoption, or project performance.
2 days ago
