Frax Finance, a DeFi protocol and home to a major stablecoin, plans to launch its layer 2 blockchain, Fraxtal, in February. The launch is expected to attract at least several hundred million dollars worth of crypto assets in the first month and potentially reach a market cap of $1 billion in Q1. Fraxtal will use rollups technology and Frax's liquid staking token frxETH to power layer 2 and act as a gas for the chain. Fraxtal's blockspace incentives feature, called Flox, is expected to make it stand out among other layer 2s.