The whole worth locked (TVL) on Ethereum layer-2 networks not too long ago 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 information again to the principle blockchain.
According to information from L2BEAT, a layer-2 analytics platform, the TVL on these scaling options not too long ago reached an all-time excessive of $21.16 billion, representing a 340% development from the identical day final yr.
Ethereum Layer-2 Networks Hit New Milestone
2023 was an amazing yr for Ethereum, because the altcoin and its scaling options registered a gentle improve in TVL regardless of strong competition from different networks like Solana and Cardano. Data 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% development.
This development 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.
At the time of writing, the TVL is now at $20.41 billion, nonetheless up by 3.82% prior to now seven days. A giant fraction of this layer-2 TVL will be attributed to Arbitrum One, with the scaling answer at the moment having $10.05 billion value of cryptocurrencies locked.
OP Mainnet, previously referred to 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 | Source: ETHUSD on Tradingview.com
State Of The ETH Network
This huge development 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 development all year long, including $7.6 billion within the final quarter of 2023. Data from DeFiLlama reveals the TVL on Ethereum is now at $28.532 billion.
However, Ethereum has seen its every day lively addresses and transaction rely plunge in the previous few months. Data from Artemis revealed the community is at the moment being surpassed by Solana and Sui when it comes to every day transaction rely. (*2*) 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 Era and Arbitrum at 39.91 million and 35.54 million respectively, forward of Ethereum’s rely of 33.91 million transactions.
Featured picture from Yahoo Finance, chart from Tradingview.com
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