ANALISIS MARKET CAPITALIZATION DAN TOTAL VALUE LOCK TERHADAP VOLATILITAS LAYER 2 COIN DENGAN MODEL GARCH

This study examines the effect of Market Capitalization and Total Value Locked (TVL) on the volatility of Layer 2 cryptocurrency coins using the GARCH (Generalized Autoregressive Conditional Heteroskedasticity) model. Layer 2 coins were selected due to their critical role in enhancing blockchain scalability and their high volatility in the cryptocurrency market. The study uses daily secondary data from January to March 2025, covering price volatility, Market Capitalization, and Total Value Locked. The analysis was conducted using multiple linear regression and the GARCH model to capture volatility patterns. The results indicate that Market Capitalization significantly affects price volatility (p-value = 0.024), while Total Value Locked shows no significant effect (p-value = 0.150). The Adjusted R² value of 0.060 suggests that most variations in volatility are explained by factors outside the model. These findings contribute to the literature on digital finance and provide insights for investors on the role of market fundamentals in cryptocurrency volatility. Furthermore, this study recommends further exploration of other external factors such as market sentiment, regulations, and technological adoption dynamics.