Movement brings Facebook's Move programming language to Ethereum as the first MoveVM-based Layer 2 network. The project launched its mainnet in December 2024 alongside an $830 million airdrop, immediately establishing itself among the most anticipated Ethereum scaling solutions of the cycle.
The network combines Move's security advantages with Ethereum's liquidity and network effects, addressing a fundamental tension in blockchain development. According to Movement's official documentation, the architecture enables transaction throughput exceeding 10,000 TPS while maintaining compatibility with both Move and Solidity smart contracts.
What is Movement Network?
Movement Network operates as an Ethereum Layer 2 that uses the Move Virtual Machine (MoveVM) for smart contract execution while settling transactions on Ethereum mainnet. The project was founded by Cooper Scanlon and Rushi Manche, Vanderbilt dropouts who raised $38 million from Polychain Capital, Binance Labs, and other institutional investors.
The Move programming language originated from Facebook's abandoned Diem project. Meta engineers designed Move specifically for financial applications, incorporating resource-oriented programming that prevents common vulnerabilities like reentrancy attacks. Aptos and Sui were first to deploy Move-based Layer 1s, but Movement became the first to bring MoveVM to an Ethereum rollup.
Core Architecture Components:
| Component | Function |
|---|---|
| Move-EVM (MEVM) | Compatibility layer enabling interaction between Move and Ethereum ecosystems |
| Decentralized Shared Sequencer (DSS) | Transaction ordering with fairness guarantees and censorship resistance |
| MoveStack | Modular framework for launching custom Move-based Layer 2s |
| Fast-Finality Settlement | Novel mechanism providing near-instant transaction confirmation |
The modular architecture allows developers to deploy Move rollups tailored to specific applications. DeFi protocols, gaming platforms, and enterprise solutions can each optimize their configurations while sharing Movement's security infrastructure.
How Movement's Technology Works
Movement's design philosophy centers on bringing Move's security guarantees to Ethereum without sacrificing compatibility with existing tooling.
Move Programming Language Advantages
Move handles digital assets as first-class resources rather than mere integers in a database. Resources cannot be duplicated or accidentally destroyed, with the compiler enforcing these constraints before code ever reaches the blockchain. This eliminates entire categories of bugs that have cost the DeFi ecosystem billions.
The language also enables parallel transaction processing. Unlike Ethereum's sequential execution model, Move can identify independent transactions and process them simultaneously. This architectural difference explains how Movement achieves throughput numbers that dwarf traditional Ethereum Layer 2 solutions.
Dual VM Compatibility
Movement supports both Move and Solidity smart contracts through its MEVM compatibility layer. Ethereum developers can deploy existing contracts without modification, while teams wanting Move's security benefits can build natively. Applications can even call between Move and Solidity contracts, creating genuine interoperability rather than forcing ecosystem fragmentation.
Settlement on Ethereum
As a true Layer 2, Movement inherits Ethereum's security for final settlement. Transaction data posts to Ethereum mainnet, meaning Movement's security assumptions reduce to Ethereum's proven validator set rather than requiring trust in a new network. This distinguishes Movement from alternative Layer 1s that must bootstrap their own security.
Understanding MOVE Tokenomics
MOVE launched on December 9, 2024, with one of the largest airdrops in recent crypto history. The token serves as the native asset for gas fees, staking, and governance across the Movement ecosystem.
Supply Distribution (10 Billion Total):
- Ecosystem & Community: 40%
- Early Backers: 22.5%
- Early Contributors: 17.5%
- Foundation: 10%
- Initial Claims (Airdrop): 10%
The initial circulating supply at TGE was approximately 2.25 billion tokens (22.5%), with the remainder subject to vesting schedules extending through 2029. Community allocation dominates the distribution, with 60% ultimately flowing to ecosystem participants, the foundation, and airdrop recipients.
Utility Functions
MOVE powers multiple network functions: transaction fees on Movement mainnet, staking rewards for validators securing the network, governance voting on protocol parameters, and native asset functionality within Movement-based applications. Future Layer 2s built using MoveStack will also use MOVE for gas fees, expanding utility as the ecosystem grows.
The MoveDrop airdrop distributed 1 billion tokens to testnet participants, community members, and builders. Users claiming on Movement mainnet received a 1.25x bonus compared to claiming on Ethereum, incentivizing early network adoption.
Market-Making Controversy
Movement's launch was overshadowed by controversy surrounding its market-making arrangements. According to CoinDesk's investigation, approximately 66 million MOVE tokens (5% of supply) were loaned to an obscure entity called Rentech, which sold tokens shortly after launch, triggering a $38 million selloff.
Internal documents revealed disputes over whether Movement Foundation was misled into signing the agreement. Co-founder Rushi Manche was suspended and later terminated following the scandal, with Movement Labs initiating a third-party review of the arrangements.
The controversy highlighted broader issues around token launch practices in crypto, including undisclosed advisor agreements and opaque market-making deals. MOVE traded down over 90% from its December 2024 all-time high of $1.45 to approximately $0.04 by late December 2025, though the decline reflects both the scandal and broader market conditions.
Movement Labs has since restructured under the Move Industries banner with new leadership, though the episode damaged credibility with early investors and community members.
Trading MOVE on LeveX
LeveX provides access to MOVE through both spot and perpetual futures markets.
Spot Trading
Purchasing MOVE directly enables participation in Movement's governance and staking mechanisms. Token holders can delegate to validators on mainnet to earn staking rewards while contributing to network security. Direct ownership also positions holders for potential ecosystem airdrops from projects building on Movement.
Futures Trading
MOVE perpetual contracts suit traders focused on price exposure. Given MOVE's significant volatility since launch, futures positions require disciplined risk management and appropriate position sizing.
LeveX futures fees start at 0.02% for makers, providing cost-effective access to MOVE price movements in either direction.
Advantages and Challenges
Strengths
Security Architecture: Move's resource-oriented programming prevents reentrancy and other common exploits that have drained billions from Solidity contracts.
Dual Compatibility: Supporting both Move and Solidity lowers adoption barriers while offering genuine security improvements for teams willing to learn Move.
Ethereum Settlement: Inheriting Ethereum's security eliminates the cold-start problem facing alternative Layer 1s attempting to bootstrap validator sets.
Ecosystem Development: Over 200 teams built on Movement testnet before mainnet launch, demonstrating genuine developer interest beyond token speculation.
Challenges
Leadership Turmoil: Co-founder termination and market-making scandal damaged trust at a critical growth stage. Rebuilding credibility requires sustained execution.
Token Performance: 90%+ decline from ATH creates an overhang of underwater holders who may sell on any recovery, creating persistent resistance.
Competition: Arbitrum, Optimism, Base, and other established Layer 2s have significant head starts in liquidity, users, and developer mindshare.
Move Adoption: Despite security advantages, Move remains less familiar than Solidity. Convincing developers to learn a new language requires demonstrating clear benefits.
The Layer 2 Landscape
Movement enters a crowded market with a differentiated technical approach. While Arbitrum and Optimism dominate current Layer 2 TVL, Movement bets that security-conscious developers will prioritize Move's guarantees over ecosystem maturity.
The project's modular MoveStack framework positions it as infrastructure for launching purpose-built rollups rather than competing as a single general-purpose chain. This platform play could generate sustained MOVE demand if multiple projects adopt the stack for their own networks.
Whether Movement can execute on this vision while recovering from its rocky token launch remains the central question. The technology addresses real problems in blockchain security, but crypto markets ultimately judge projects on execution and community trust as much as technical merit.
For traders interested in Ethereum scaling infrastructure, MOVE provides exposure to one of the space's most technically ambitious projects. Start with MOVE spot trading or access leveraged positions through MOVE futures on LeveX. Explore our Crypto in a Minute guides to learn about other Layer 2 solutions and blockchain infrastructure projects.