Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.
Web3 News

Ethereum Layer 2 TVL Breaks $25 Billion as Users Seek Scalability and Lower Fees

L2BEAT data shows that the current total locked value (TVL) of Ethereum Layer 2 is $25.34 billion, with a 7-day increase of 10.97%. The top five locked values are: Arbitrum One TVL is $12.25 billion, with a 7-day increase of 12.11%; OP Mainnet TVL is $6.5 billion, with a 7-day increase of 15.45%; Manta Pacific TVL is $1.76 billion, with a 7-day increase of 13.81%; Base TVL is $0.843 billion, with a 7-day increase of 6.89%; Metis TVL is $0.732 billion, with a 7-day increase of 10.34%.

The total value locked (TVL) on Ethereum Layer 2 solutions has surpassed $25 billion, according to data from L2beat, a platform that tracks the state of the Layer 2 ecosystem.

This represents a 10.97% increase in the past week, as more users and projects migrate to layer two networks to enjoy faster transactions, lower fees, and higher scalability.

Ethereum Layer 2 solutions are protocols that run on top of the Ethereum mainnet but use different consensus mechanisms and security assumptions to process transactions more efficiently.

They aim to address the challenges of Ethereum’s limited throughput and high gas costs, which have been aggravated by the growing demand for decentralized applications (dApps) and non-fungible tokens (NFTs).

Among the various types of layer two solutions, such as optimistic rollups, zk-rollups, validium, and sidechains, optimistic rollups have gained the most traction, accounting for over 70% of the total layer two TVL.

The leading optimistic rollup network is Arbitrum One, which holds nearly 50% of the total layer two TVL, with over $12 billion locked in its contracts.

Arbitrum One launched its mainnet in September 2023 and has attracted many prominent dApps and protocols, such as Uniswap, Aave, Maker, SushiSwap, and Chainlink. Arbitrum One claims to offer 55 times more scalability than Ethereum and has processed over 100 million transactions since its launch.

Another prominent optimistic rollup network is Optimism which ranks second in terms of layer two TVL, with over $6 billion locked in its contracts.

Optimism was one of the first layer two solutions to launch on Ethereum and has also integrated with many popular dApps and protocols, such as Synthetix, Uniswap, Compound, and Curve.

Besides optimistic rollups, zk-rollups are another type of layer two solution that uses zero-knowledge proofs to verify transactions.

The leading zk-rollup network is zkSync, which has over $500 million locked in its contracts. As Ethereum Layer 2 solutions continue to grow and innovate, they offer new opportunities and challenges for users and developers in the web3 space.

How will layer two networks affect the adoption and development of dApps and NFTs? Will they complement or compete with the upcoming Ethereum 2.0 upgrade?

These are some of the questions that web3 enthusiasts and experts will have to explore and answer in the coming months and years.

See: Ethereum’s Dencun Upgrade Faces Delay on Testnet

Victor Chijoke

Passionate about blockchain, and the decentralized internet. A writer in the morning, goalie in the evening. The aim is to keep my readers informed about the ever-evolving world of web3 with a unique blend of expertise and storytelling.

Related Articles

Back to top button