“The remarkable surge in Total Value Locked (TVL) on Ethereum Layer-2 solutions is revolutionizing the DeFi landscape, propelling decentralized finance to new heights and unlocking limitless opportunities for investors and users alike.”
DeFi’s total value locked (TVL) in layer-2 Ethereum platforms is experiencing significant growth. Despite a relatively flat cryptocurrency market, the net TVL of the 30 most popular platforms has increased by 32% over the past four months. This surge in TVL is dominated by Ethereum, which has seen its TVL reach a record high of over $12 billion. The previous record of $11.85 billion was set in April 2023.
In the past year, the value of the L2 ecosystem has increased by over 114% in US dollars. The ecosystem now holds 6.72 million ETH, compared to 3.5 million ETH locked a year ago. This growth can be attributed to the impressive gains made by the largest layer-2 platforms, as well as a 10.14% increase in the price of Ethereum.
When it comes to the L2 market on Ethereum, it is still heavily dominated by whales. Over 90% of the TVL is generated by the two largest networks, Arbitrum and OP Mainnet. However, the fastest-growing L2, Base, holds the third-place spot with a 4.83% share.
Overall, the surge in TVL in layer-2 Ethereum platforms is fueling the growth of DeFi. Despite a lackluster market, these platforms are attracting more value and attention, indicating the potential and importance of layer-2 solutions in the blockchain ecosystem.
In other news, Shiba Inu developers are teasing a groundbreaking self-custodial identity project. This project could have significant implications for the crypto industry and further enhance the security and privacy of user identities.
