Decrease in On-Chain Activities Leads to Shift in Focus to Layer 1 in the Movement
In a significant development, Move Industries, the team behind the blockchain project Movement, has announced plans to launch their own Layer-1 blockchain. This transition is expected to provide performance of 10k+ transactions per second (TPS) with sub-second latency, featuring the new Move 2 programming language.
Originally developed by Meta, the Move smart contract programming language is renowned for its security and performance. Movement, which debuted as an Ethereum L2 in late 2024, has processed a total of 26.7 million transactions since then. However, recent on-chain figures indicate a decline in network usage over the past few months. On-chain figures show a 34% drop in transactions from June to August, with the number falling from 7.3 million in June to 4.8 million in August.
Move Industries had promised native staking, validator-based security, and an upgrade to 'Move 2,' an updated version of the Move smart contract programming language. However, the transition will not lock any tokens for staking on the Move Labs blockchain. Instead, Move Industries is preparing an L1 developers network in preparation for the transition.
The planned transition comes amidst controversy. Movement's co-founder was ousted earlier this year due to controversy, and Rushi Manche, another co-founder, has sued the project following his suspension and termination this spring. The lawsuit was triggered by an alleged market-making deal that reportedly caused a MOVE token price drop.
Despite the challenges, Move Industries remains optimistic. Torab Torabi, CEO of Move Industries, stated that the original architecture/framework was not tenable for their goals and they are now pursuing the optimal Move builder and user experience.
The timeline for the transition from L2 to L1 is currently unclear. Last month, Ronin, a blockchain gaming ecosystem, announced its pivot from a standalone sidechain back to Ethereum as an L2, due to a decline in monthly transaction count and total value locked. As of now, The Defiant's attempts to reach Move Industries for a comment have been unsuccessful.
MOVE is currently down over 90% from its all-time high, which it reached in December 2024, shortly after launching. The future of Movement remains uncertain, but the transition to a Layer-1 blockchain represents a significant step towards achieving the promised performance and security.
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