X Layer's Recent On-Chain Surge and Meme Coin Dynamics: Assessing Resilience and Speculative Potential

In Q3 2025, the DeFi sector witnessed a 41% surge in Total Value Locked (TVL), surpassing $160 billion, driven by renewed institutional interest and Ethereum's Dencun upgradeDeFi's total locked value (TVL) climbed by 41% in Q3, surpassing $160 billion^[1]. Amid this broader recovery, X Layer—a zero-knowledge, EVM-compatible Layer 2 network developed by OKX in collaboration with Polygon—emerged as a standout performer. By August 18, X Layer's TVL soared past $88 million, a 100% increase in just one weekX Layer Network TVL Soars Past $88 Million, Signaling Potential^[2]. This growth, however, was juxtaposed with stark volatility, as TVL retreated to $84 million by late August, raising questions about the sustainability of the surgeX Layer網路TVL激增，短暫突破8,800萬美元創歷史新高^[3].

TVL Growth and Network Resilience

X Layer's TVL surge aligns with the broader Layer 2 renaissance, where networks like Arbitrum and Optimism have seen record TVL due to reduced transaction fees and improved scalabilityLayer 2 TVL Trends: Q1 2025 Insights^[4]. While X Layer lags behind these leaders, its resilience stands out amid broader declines. For instance, Ethereum's Layer 2 network Blast saw a 97% TVL drop from $2.2 billion in June 2024 to $67 million by August 2025Ethereum Layer-2 Network Blast Experiences 97% TVL Drop^[5]. In contrast, X Layer maintained a TVL of $84 million as of September 2025, underscoring its ability to attract liquidity amid market turbulenceX Layer Network TVL Skyrockets, Surpassing $88 Million^[6].

This resilience is partly attributed to X Layer's technical upgrades, including a collaboration with Polygon to achieve 5,000 transactions per second (TPS) and near-zero gas feesX Layer Meme Coin Market Cap Explodes Past $37M^[7]. These improvements positioned X Layer to capitalize on the September 2025 meme coin frenzy, where on-chain transaction volume spiked to $77.45 million in a single 24-hour periodX Layer's on-chain transaction volume in the past 24 hours^[8].

Meme Coin Dynamics and Speculative Pressure

The meme coin boom on X Layer was fueled by tokens like $XDOG and $DOGSHIT. $XDOG surged 540% in 24 hours, reaching a $40.23 million market cap, while $DOGSHIT hit $37 million within a week of its launchX Layer Meme Coin Market Cap Explodes Past $37M^[9]. OKX's Boost campaign, which provided early liquidity and visibility, played a pivotal role in amplifying these tokens' tractionX Layer Meme Coin Market Cap Explodes Past $37M^[10].

However, the speculative nature of meme coins introduces risks. A report by Coin Metrics highlighted a high Gini coefficient among X Layer's meme token holders, indicating concentrated ownership and potential liquidity issuesMeme Coin Mania - Coin Metrics' State of the Network^[11]. Additionally, the broader macroeconomic environment—marked by Bitcoin's all-time highs—fueled risk-on behavior, but such volatility could reverse rapidly, as seen in Solana's congestion crises, where 50–80% transaction failure rates emerged under similar trading pressuresSolana’s market resilience tested amid network challenges^[12].

Network Performance Under Pressure

X Layer's infrastructure appears robust in handling high-volume activity. On September 13, the network processed 444,300 transactions in 24 hours, leveraging its TPS capacity and OKB-based gas model to minimize costsX Layer's on-chain transaction volume in the past 24 hours^[13]. This contrasts sharply with Solana's struggles, where ping times exceeded 40 seconds and transaction failures reached 80% during peak meme trading periodsSolana’s market resilience tested amid network challenges^[14].

Yet, the network's reliance on speculative demand raises concerns. While X Layer's TVL growth reflects short-term momentum, its long-term viability hinges on whether users will transition from speculative trading to sustainable DeFi adoption. Protocols like Aave and Lido, which saw TVL gains of 58–77% in Q3 2025DeFi's total locked value (TVL) climbed by 41% in Q3, surpassing $160 billion^[1], demonstrate that utility-driven growth can coexist with speculative trends.

Conclusion: Balancing Resilience and Speculation

X Layer's recent surge underscores its potential as a scalable Layer 2 solution, particularly for high-frequency trading and meme coin ecosystems. Its technical upgrades and strategic partnerships with OKX and Polygon have enabled it to outperform competitors like Blast during market downturns. However, the network's reliance on speculative activity—exemplified by meme coin dynamics—introduces inherent risks.

Investors should monitor two key metrics: (1) whether X Layer's TVL stabilizes above $80 million amid reduced speculative fervor and (2) the network's ability to attract utility-driven protocols beyond meme tokens. For now, X Layer represents a high-risk, high-reward proposition, where resilience and volatility are two sides of the same coin.