“Ethereum L2s Break Barriers: Unexpectedly Surpass Previous All-Time Highs, Paving the Way for Enhanced Scalability and Mainstream Adoption”
For the first time ever, the net total value locked (TVL) in multiple Layer-2 (L2) protocols on Ethereum (ETH) has exceeded $12 billion. This is a significant milestone for the programmable blockchain ecosystem.
Despite the general market apathy, the TVL of 30 leading platforms in the DeFi sector has seen a 32% increase in the last four months. This metric is crucial for measuring the adoption and usage of blockchain platforms.
Yesterday, on October 27, 2023, the aggregated value of cryptocurrency locked in all L2 platforms on Ethereum reached a new all-time high. It briefly touched $12 billion before stabilizing near $11.87 billion. The previous record was set on April 17, 2023, at $11.85 billion.
In the last 12 months, the net TVL in L2 protocols has experienced a growth of over 114% in USD-denominated value, despite the lackluster performance of the cryptocurrency market. In terms of Ether-denominated value, the record was set on October 11, 2023, with 6.72 million Ether (ETH) locked, compared to just 3.5 million Ether (ETH) a year ago.
Over the past seven days, the TVL in L2 protocols has increased by 10.36% in USD value. Some of the largest L2 platforms, such as Arbitrum, OP Mainnet (formerly Optimism), Starknet, ImmutableX, and Loopring, have posted even more impressive gains.
Ethereum (ETH), which is the most important asset for L2 protocols, has also seen a 10.14% increase in value over the corresponding period. However, it recently revisited a multi-month low at just over $1,836.
While the L2 ecosystem on Ethereum remains highly dominated by whales, with Arbitrum and OP Mainnet responsible for over 90% of the TVL, there is growing competition for the third position. Base, the fastest-growing L2, currently holds the third spot with 4.83% of the TVL. It is followed by zkSync Era and dYdX with 3.8% and 3% respectively.
In recent news, dYdX, one of the prominent L2 platforms, announced its migration from the L2 model to becoming a standalone Tendermint-based Layer 1, which has generated significant anticipation in the industry.
In conclusion, the TVL in Ethereum-based Layer-2 protocols has reached a new all-time high, surpassing $12 billion. Despite the market conditions, the DeFi sector continues to grow, demonstrating the resilience and potential of programmable blockchains.