Disclaimer: Nansen has produced the following report in collaboration with Slice Analytics as part of its existing contract for services provided to Scroll Foundation (the "Customer") at the time of publication. While Scroll Foundation has the right to review and provide feedback to Nansen, Nansen maintains full editorial control over the publication of this report. All views expressed are the independent opinions of Nansen's research analyst(s) who are the author(s) named in this report. This report is intended for informational purposes only and does not serve as investment, financial, professional, or other advice. For more information, please refer to the disclaimer at the end of this report, as well as our Terms of Service.
Overview
Scroll is a Layer-2 scaling solution for Ethereum that leverages zero-knowledge rollups (zkEVM) to enhance transaction efficiency, scalability, and security while maintaining full Ethereum compatibility. By batching transactions off-chain and submitting cryptographic proofs to Ethereum, Scroll significantly reduces costs and increases throughput without compromising decentralization. Designed with an open-source, developer-friendly approach, Scroll enables seamless deployment of existing Ethereum smart contracts while ensuring a trustless, censorship-resistant environment. With strong ecosystem support, Scroll is building toward a fully decentralized prover and sequencer network, fostering a scalable and inclusive blockchain infrastructure for the future.
In Q4 2024, Scroll advanced its Ethereum Layer-2 ecosystem with major developments across infrastructure, decentralization, and ecosystem growth. It launched OpenVM, a modular zkVM framework developed with Axiom, enabling custom VM extensions, proof aggregation, and enhanced on-chain verification. Additionally, the Scroll SDK and Gadgets empowered developers to deploy sovereign zkEVM-based chains, addressing liquidity fragmentation and interoperability with innovations like the Interoperability Gadget. To expand cross-chain capabilities, Scroll integrated Chainlink CCIP, providing secure and programmable token transfers across multiple blockchains. The network also fostered community participation through Scroll Sessions 2 and Scroll Open, incentivizing builders and rewarding ecosystem engagement. Finally, Scroll took a major step toward decentralization with the launch of the SCR token, designed for governance, prover, and sequencer decentralization. With 1 billion SCR in circulation and strategic allocations for airdrops, ecosystem growth, and contributors, SCR solidified Scroll’s long-term sustainability and community-driven future.
Key Developments: Q4 2024
Scroll has launched the first release of the OpenVM framework, a modular and extensible zkVM framework developed in collaboration with Axiom and individual contributors. OpenVM enables efficient proving, custom VM extensions, and seamless on-chain verification, supporting a range of features such as RISC-V compatibility, proof aggregation, and advanced cryptographic functions. Scroll adopted zkVMs to accelerate development and leverage recent advancements in proof systems while avoiding monolithic solutions. Future plans include enhancing OpenVM’s SDK and Rust support, conducting R&D on the GKR-based zkVM Ceno, and transitioning Scroll’s mainnet validation to OpenVM for improved Ethereum compatibility and enhanced security.
Scroll has launched the Scroll SDK and Gadgets to build the foundation for Ethereum’s multichain future, enabling developers to deploy sovereign blockchain networks secured by zkEVM technology. With Scroll processing over 100 million transactions and securing up to $1.3B in TVL, the SDK allows for easy chain deployment, customization, and enhanced scalability while maintaining Ethereum’s security. Gadgets, optional modules designed to enhance Scroll SDK chains, address multichain challenges such as liquidity fragmentation and interoperability. The first release, the Interoperability Gadget, unifies rollup networks while preserving sovereignty.
Scroll has launched its largest rewards program yet, continuing its commitment to fostering innovation and ecosystem growth. Scroll Sessions 2 introduces a revamped Marks system, allowing participants to earn rewards by contributing liquidity and engaging in DeFi activities. Meanwhile, Scroll Open is a new initiative recognizing and rewarding top-performing projects that drive meaningful innovation within Scroll’s ecosystem. With over $1B in secured assets and a thriving DeFi landscape, Scroll is expanding opportunities for builders to push boundaries and shape the future of decentralized technology.
Scroll has integrated Chainlink CCIP to enhance cross-chain interoperability, enabling developers to build secure and scalable decentralized applications. As a Layer-2 zkEVM rollup for Ethereum, Scroll benefits from CCIP’s level-5 cross-chain security, programmable token transfers, and arbitrary messaging, allowing seamless token transfers and smart contract interactions across multiple blockchains. This integration strengthens Scroll’s multi-chain accessibility, improving user experience and expanding Ethereum’s smart contract capabilities.
Scroll has taken its first step toward decentralization with the launch of the SCR token, designed to empower governance, incentivize network participants, and enhance ecosystem sustainability. SCR will facilitate the decentralization of governance, provers, and sequencers, playing a critical role in Scroll’s long-term development. The total supply is 1B SCR, with an initial airdrop on October 22, 2024, followed by future distributions. The token allocation includes 15% for airdrops, 35% for ecosystem growth, 10% for the Scroll Foundation, 23% for core contributors, and 17% for investors, ensuring broad participation and long-term alignment. SCR has also launched on Binance Launchpool, broadening accessibility.
Ecosystem
DeFi
Matcha, the DEX aggregator, now supports Scroll, offering gasless swaps and zero-fee trades powered by its advanced pricing engine. Users can trade on Scroll without needing ETH for gas, thanks to Matcha Auto, which allows transactions to be completed seamlessly. By aggregating liquidity from 15+ DEXs and utilizing optimized routing, Matcha ensures the best-executed prices and low trade failure rates. Traders can also perform cross-chain swaps to and from Scroll efficiently. Additionally, users who complete four or more trades on Scroll via Matcha can earn a special Matcha Scroll Trader Badge.
Tempest, an automatic liquidity manager (ALM) built on Ambient Finance, is now live on Scroll, offering users a one-click solution for automated liquidity deployment. By leveraging machine learning, Tempest dynamically optimizes liquidity positions, maximizing returns while minimizing risk and impermanent loss. This integration strengthens Scroll’s DeFi ecosystem by ensuring consistent liquidity on its leading DEX, reducing manual management burdens for liquidity providers. Tempest also enhances composability, allowing users to utilize LP tokens in lending protocols like Rho Markets, unlocking additional yield opportunities.
Anyrand VRF is now live on Scroll, providing developers with a free, verifiable randomness source for dApps by leveraging drand’s randomness beacon. This collaboration between Scroll, Anyrand, and Randamu ensures decentralized, cost-effective randomness for all EVM chains, unlocking new possibilities for games, lotteries, and governance applications. Unlike traditional block hash-based randomness, Anyrand offers a secure, verifiable solution through a new drand beacon on the BN254 curve. Developers can integrate randomness easily via Anyrand’s service or use drand’s BLS signatures manually.
NFTs & Gaming
Dark Factory, a strategy game that merges the exploration mechanics of Dark Forest with the automation and resource management of Factorio, has deployed on Scroll devnet, utilizing zero-knowledge proofs (ZKP) for privacy, security, and decentralization. Players design and optimize island layouts to maximize resource production while adhering to in-game constraints like road connectivity. Built using Circom, Solidity, and SnarkJS, the game ensures efficient ZKP verification, enabling in-browser proof generation in seconds, even on mobile. Overcoming complex circuit design challenges, Dark Factory pioneers privacy-preserving, scalable blockchain gaming. Recognized for its innovation, Dark Factory won multiple awards, including Scroll’s Innovate on Scroll (2nd place), Blockscout’s Explorer Big Pool Prize, and became a finalist at ETHGlobal Bangkok 2024.
Monsters X Lab launched its mythology-inspired NFT collection on Scroll, leveraging the network’s scalable smart contracts and low fees to deliver high-quality digital art. This art collective transforms classic, supernatural, and legendary creatures into NFTs, blending storytelling with blockchain technology. More than just an NFT drop, Monsters X Lab is actively involved in Scroll’s governance, ecosystem development, and support for emerging creators, reinforcing the network’s growing role in digital art and Web3 communities.
Enterprise & RWAs
Scroll has partnered with Nansen to integrate advanced blockchain analytics into its ecosystem, fostering data-driven growth and development. The launch of the Scroll Macro Dashboard on Nansen provides deep insights into key ecosystem metrics, helping users make informed decisions. This collaboration enables real-time ecosystem monitoring, project support, and trend analysis across DeFi, gaming, and NFTs.
In September 2024, Huma Finance extended its Payment Financing (PayFi) network to the Scroll blockchain, aiming to enhance scalability and accessibility in decentralized finance. This expansion allows users to leverage Scroll's infrastructure for more efficient and transparent payment financing solutions. Notably, Huma Finance has processed over $2 billion in transactions since its inception in 2022, reflecting its growing impact in the DeFi space.
On-chain Data
Daily Transactions
In Q4 2024, the Scroll network saw substantial movement at the beginning of the quarter - fueled by rumors related to the airdrop. The biggest transaction peak of the network happened on 22nd of October, when Airdrop was announced and made claimable. Since then, the number has been largely consolidating with a small drop-off towards the end of the quarter - aligned with transaction trends for other Ethereum Layer-2’s.
Daily Active Addresses
Daily Active Addresses metric shows a similar sentiment to the Transactions one - a rise in the pre-airdrop period, followed by a peak at claim time. The stabilization period afterwards shows that after SCR token has been distributed, Scroll network still has a solid base of around 20-40k unique addresses, which are interacting with the chain on a daily basis - a good prognostic for the future.
Top Entities by Users and Transactions
In Q4, all metrics are dominated by SCR airdrop - and Top Entities tables are no different in that regard. Scroll token has been dominant in the quarter, with over 44% of network addresses interacting with the token, attributing for over 50% of chain’s transaction numbers. Second place was claimed by the network’s largest stablecoin - USDC, with almost 17% of user market share and 13.5% of transaction market share. Such strong numbers indicate a lot of trading activity between SCR and USDC. Final spots of the Top 5 were taken by chain dominant DeFi service providers - Aave, SyncSwap, Ambient Finance and Stargate.
Closing Thoughts
Q4 2024 marked a transformative period for Scroll, demonstrating its rapid evolution as a leading Ethereum Layer-2 scaling solution. With major advancements in infrastructure, decentralization, and interoperability, Scroll strengthened its foundation for a scalable, multi-chain future. The launch of OpenVM, Scroll SDK, and Gadgets empowered developers to deploy customized, high-performance rollups, while Chainlink CCIP integration expanded cross-chain connectivity. The introduction of the SCR token took a significant step toward decentralizing governance, provers, and sequencers, ensuring a sustainable and community-driven network. Scroll’s DeFi, gaming, and enterprise ecosystems saw remarkable growth, with integrations like Matcha, Tempest, Anyrand VRF, zkSanta, Dark Factory, and Nansen driving adoption and innovation. The success of Scroll Sessions 2 and Scroll Open underscored the network’s commitment to fostering participation and rewarding contributors. On-chain activity surged with the SCR airdrop, attracting new users while establishing a strong base of daily active addresses and transaction volume, solidifying Scroll’s position as an upcoming key player in the Ethereum ecosystem.
As Scroll continues its mission of global on-chain accessibility, the groundwork laid in Q4 2024 paves the way for greater decentralization, enhanced scalability, and deeper ecosystem integration. With a growing community, cutting-edge technology, and a robust governance framework, Scroll is well-positioned to lead the next era of Ethereum Layer-2 innovation.
