There is over $ 4.2 billion stuck in Ethereum Layer 2 protocols

Parbit

According to data from the L2BEAT analytics platform, there has never been more value locked in in Ethereum’s Layer 2 scaling solutions.

With rising gas costs driving the adoption of networks like Arbitrum, Optimism, and Loopring, Layer 2 TVL has grown by over 44% in less than a month.

Users pour their money into L2s as Ethereum fees skyrocket

With average transaction fees on Ethereum approaching dangerously close to its all-time high, the network has become increasingly inaccessible to the average user.

And while the transaction price managed to consolidate around $ 36, data from BitInfoCharts showed the average transaction fee on Ethereum to cost more than $ 62 in early November.

average ethereum fees
Chart showing average transaction fees on Ethereum from January 2021 to November 2021 (Source: BitInfoCharts)

This has pushed a record number of users to Layer 2 network solutions, which offer significantly lower fees and much faster transaction completion.

According to L2BEAT data analytics platform, Total Locked-In Value (TVL) in Ethereum’s Layer2 solutions hit an all-time high, surpassing 1.4 million ETH. At current prices, that works out to about $ 6.13 billion.

ethereum layer2 tvl
Graph showing Total Locked-In Value (TVL) in Ethereum’s Layer2 solutions (Source: L2BEAT)

Arbitrum accounts for the largest share of the Layer2 market, capturing just over 43% of TVL, worth around $ 2.67 billion. dYdX ranks second with a 15% market share worth $ 975 million, while the brand new Boba network came in third with $ 863 million.

The best known Loopring, Optimism and ZKSwap V2 have respectively $ 580 million, $ 461 million and $ 218 million in TVL.

Top 10 TVL Layer 2 Networks
Table showing the top 10 Ethereum Layer2 solutions by Total Locked Value (TVL) (Source: L2BEAT)

The data appears to support general market sentiment towards Ethereum. Even the most prominent investors in the industry have voiced the problem of Ethereum’s fees, with many actively exploring engagement with competitors such as Avalanche.

Get a edge in the crypto-asset market

Access more cryptographic and background information in each article as a paying member of CryptoSlate Edge.

Chain analysis

Price snapshots

More context

Sign up now for $ 19 / month Discover all the advantages

Parbit

Like what you see? Subscribe for updates.


Source link