The full worth locked (TVL) on Ethereum layer-2 networks just lately hit a brand new all-time excessive in January, a testomony to the continued adoption of Ethereum. Layer 2 networks sit on prime of the Ethereum blockchain and assist scale it by processing transactions off-chain earlier than sending knowledge again to the principle blockchain.
In accordance with knowledge from L2BEAT, a layer-2 analytics platform, the TVL on these scaling options just lately reached an all-time excessive of $21.16 billion, representing a 340% progress from the identical day final yr.
Ethereum Layer-2 Networks Hit New Milestone
2023 was a fantastic yr for Ethereum, because the altcoin and its scaling options registered a gradual improve in TVL regardless of strong competition from different networks like Solana and Cardano. Knowledge from L2Beat reveals the TVL on these scaling options began in 2023 with $4.81 billion however grew steadily all through to finish the yr at $19.98 billion {dollars}, a 315% progress.
This progress was significantly exacerbated within the final quarter of 2023 and continued into 2024. The TVL grew by $1.18 billion within the first three days of January to achieve $21.16 on January 3, its present all-time excessive.
On the time of writing, the TVL is now at $20.41 billion, nonetheless up by 3.82% previously seven days. A big fraction of this layer-2 TVL might be attributed to Arbitrum One, with the scaling resolution at the moment having $10.05 billion price of cryptocurrencies locked.
OP Mainnet, previously known as Optimism, is second with a present TVL of $5.84 billion. 57% of this TVL consists of OP tokens, in comparison with Arbitrum One, whose ARB token constitutes solely 36% of the TVL.
ETH value holds $2,200 | Supply: ETHUSD on Tradingview.com
State Of The ETH Community
This large progress reveals that Ethereum customers are flocking to layer 2 networks to flee excessive gasoline charges and congestion on the mainnet. Ethereum’s TVL additionally witnessed regular progress all year long, including $7.6 billion within the final quarter of 2023. Knowledge from DeFiLlama reveals the TVL on Ethereum is now at $28.532 billion.
Nevertheless, Ethereum has seen its day by day lively addresses and transaction depend plunge in the previous couple of months. Knowledge from Artemis revealed the community is at the moment being surpassed by Solana and Sui when it comes to day by day transaction depend. Recent competition from Solana prompted an analyst to describe Ethereum as digging its personal grave by relying an excessive amount of on its layer-2 networks for scalability.
Some layer-2 chains are additionally at the moment processing extra transactions than Ethereum itself. L2BEAT places the month-to-month transactions on zkSync Period and Arbitrum at 39.91 million and 35.54 million respectively, forward of Ethereum’s depend of 33.91 million transactions.
Featured picture from Yahoo Finance, chart from Tradingview.com
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