The Ethereum L2 is aiming to launch its own L1, but on-chain data shows a decline in transaction activity.
The move, the co-founder involved in the controversy and exiled earlier this year, said it plans to launch its own Layer 1 blockchain while current chain activity is gradually diminishing.
In an X announcement on Tuesday, September 16th, Move Industries, the team behind the project, said the network “stripped the ceiling as a sidekickine,” and as they move from Ethereum’s L2 to its own Layer 1, performance will be “10K+ TP with potential latency at 10k+ TPS.”
The team has also promised native staking, validator-based security and upgrades to Move 2, an updated version of the programming language.
The movement is built on the Move Smart Contract programming language originally developed by Meta and promoted for its security and performance.
“When I was diligently researching the builders and the community, I realized that I couldn’t appoint them to what the original architecture/framework was trying to achieve. I pursue the optimal mobile builder and user experience without chasing ‘alignment’.
However, on-chain figures show that network usage has declined over the past few months. Token Terminal data shows that monthly transaction counts have been decreasing since June when it reached 7.3 million. By August, trading had fallen to 4.8 million, down 34%.
Since debuting as the Ethereum L2 in late 2024, the move has processed a total of 26.7 million transactions, placed just above Celestia, reaching 19.3 million, but has been delayed by PEAQ with 29 million transactions in the last 365 days per token terminal and 44.3 million transactions on Polkadot.
In this week’s X-thread, Move Industries said launching as the L1 means “no centralized sequencer” and that “no one can wager a locked token,” adding that “network state, off-chain storage, and over-chain frameworks will be migrated” will make the migration seamless for users.
For each X-thread, the migration time frame remains unknown as the move prepares the L1 developer network first. The rebels reached out to move the industry but have not responded by press time.
Controversial co-founder
The transformation comes just two months after Rushi Manche, co-founder of the Movement Lab, sued the project, over a market-making deal that was reportedly caused a drop in price for mobile tokens this spring.
The move exceeded 90% of its history high, reaching its arrival in December 2024 shortly after its release.
Last month, blockchain gaming ecosystem Ronin announced it would pivot from a standalone sidechain back to Ethereum as L2 as its monthly transaction count decreased and the locked total value fell below its pre-exploit peak.