As a seasoned analyst with over two decades of experience in the tech and finance sectors, I find myself consistently impressed by the dynamic growth of the Ethereum ecosystem. The recent surge in value growth and investor interest in Ethereum-native assets is undeniably noteworthy, particularly when considering the over 205% increase in cumulative TVL for layer-2 networks within a year.
The value of the Ethereum environment is experiencing steady expansion, indicating a rising level of curiosity among investors towards Ethereum-specific assets.
As a researcher delving into the world of blockchain, I’m thrilled to report that the collective worth of assets locked within Ethereum layer-2 (L2) networks has surpassed an unprecedented peak of over $51.5 billion in Total Value Locked (TVL).
As a crypto investor, I’m thrilled to see a staggering 205% surge in the total value locked (TVL) since last November, pushing it up to an impressive figure of over $54.1 billion, according to L2beat data.
Solutions that scale Layer 2 (L2) are crucial for enhancing scalability within Ethereum, the primary platform for smart contracts. These L2 solutions shift transaction handling to subsidiary chains, thereby reducing costs and wait times related to the Ethereum main network.
As a crypto investor, I’ve noticed the excitement surrounding Layer 2 solutions, but I can’t help but feel a sense of unease. Some experts in the field are expressing concerns that these L2s might be detrimental to Ethereum’s mainnet revenue and potentially limit the price growth of Ether (ETH). In simpler terms, they fear that L2s could be ‘competing’ with the mainnet in a way that may diminish its earnings.
Arbitrum One and Base lead 205% L2 value surge
Arbitrum One and Base are the main drivers of the rise to over $51 billion TVL.
Currently, Arbitrum, a prominent layer-2 solution, boasts an impressive TVL (Total Value Locked) of around $18.3 billion. This makes up roughly 35% of the overall value locked within the entire layer-2 ecosystem.
In simple terms, the second-biggest decentralized finance network, known as Base, has a total value locked (TVL) of approximately $11.4 billion, which is slightly more than a fifth (around 22%) of the combined TVL across all L2 networks.
Over the course of the week culminating on November 28, I witnessed a significant growth in the Total Value Locked (TVL) within Arbitrum, surging by more than 12%. Similarly, Base also experienced a substantial increase in its TVL, climbing over 11.4%. This upward trend in both platforms has been quite encouraging for my crypto investment portfolio.
On November 26, the number of transactions per second (TPS) on Base exceeded 106 for the first time, coinciding with its Total Value Locked (TVL) surpassing $10 billion for the first time as well. More recently, the total number of transactions on Base has passed the one billion mark, a significant increase largely attributed to the popularity surge of meme coins during this bull market cycle.
Dencun upgrade was a significant milestone for L2 fee stabilization
As a crypto investor, I’ve observed a notable surge in the performance of Layer 2 (L2) solutions since the successful deployment of Ethereum‘s Denyus upgrade in March. This upgrade marks one of the most significant network updates since The Merge, and it seems to have positively impacted the efficiency and scalability of these L2 platforms.
The upgrade was a significant boost for fee stabilization around L2s, Nick Dodson, the co-founder and CEO of Fuel Labs, told CryptoMoon:
“On the point of EIP-4844, a lot of people talk about the fee reduction, but it’s more about fee stabilization. It’s actually more about expanding capacity and scale and not so much lowering fees.”
Nick Dodson, Fuel Labs, Interview with CryptoMoon’s Zoltan Vardai
After the upgrade was implemented, many Ethereum Layer 2 platforms experienced a significant decrease in median transaction fees, with Starknet, Optimism, Base, and Zora’s mainnet seeing a reduction of up to 99%.
Read More
- TRB PREDICTION. TRB cryptocurrency
- GBP EUR PREDICTION
- OKB PREDICTION. OKB cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- RLC PREDICTION. RLC cryptocurrency
- POL PREDICTION. POL cryptocurrency
- API3 PREDICTION. API3 cryptocurrency
- SEI PREDICTION. SEI cryptocurrency
- CNY RUB PREDICTION
2024-11-28 13:05