👉 Overview of Scroll $SCR

Scroll is an L2 solution within the Ethereum ecosystem. With numerous competitors in this space (like STRK and ZKSync), it is worth evaluating Scroll's investment potential by comparing it to its peers.

💰 Funding

Scroll raised $80M from 5 funds, with Polychain Capital as the lead investor.

Comparatively, StarkNet secured $282M, and ZKSync raised $458M.

💵 Market Capitalization (FDV - Fully Diluted Valuation):

Scroll: $970M

StarkNet (STRK): $5.7B (5.8x larger)

ZKSync: $4.3B (4.4x larger)

Despite having a significantly smaller FDV, Scroll's tokenomics appear less inflated compared to its competitors, which could imply less selling pressure from early investors unlocking tokens.

TVL (Total Value Locked):

$SCR : $306M (previously $1B before community backlash)

$STRK : $268M

ZKSync: $99M

Despite the decline in TVL and facing criticism, Scroll outperforms its competitors in this metric. Its lower capitalization relative to TVL could indicate stronger fundamentals.

Development and Expenses:

Full-time developers:

Scroll: 649

StarkNet: 215

ZKSync: 248

Scroll spends around $4.8M per month on development, significantly higher than its peers. This suggests a commitment to building a robust platform, even with its smaller market cap and limited funding.

Community Backlash:

Scroll has faced criticism for distributing rewards perceived as unfairly allocated (with a significant portion going to the team). However, from an investor's perspective, this concentration of tokens in strong hands may reduce selling pressure from early participants, potentially stabilizing prices and increasing the likelihood of price rallies.

👌 Conclusion:

The major L2 players like ARB, BASE, and OP are on a different level, boasting superior TVL and broader applicability. However, for those seeking undervalued L2 projects, Scroll stands out as both the most "hated" and potentially undervalued option. Metrics indicate that Scroll's fundamentals are solid, and its resilience during corrections suggests strong market maker support.

🚀 Investment Advice:

If considering investing in Scroll:

Avoid going all-in.

Use limit orders and invest incrementally during corrections to minimize risk.

Scroll presents an intriguing opportunity for smaller investors due to its lower valuation and higher growth potential.