The total value locked (TVL) on Ethereum layer-2 networks recently hit a new all-time high in January, a testament to the continued adoption of Ethereum. Layer 2 networks sit on top of the Ethereum blockchain and help scale it by processing transactions off-chain before sending data back to the main blockchain.\u00a0<\/p>\n
According to data from L2BEAT<\/a>, a layer-2 analytics platform, the TVL on these scaling solutions recently reached an all-time high of $21.16 billion, representing a 340% growth from the same day last year.\u00a0<\/p>\n 2023 was a great year for Ethereum, as the altcoin and its scaling solutions registered a steady increase in TVL despite strong competition<\/a> from other networks like Solana and Cardano. Data from L2Beat shows the TVL on these scaling solutions started in 2023 with $4.81 billion but grew steadily throughout to end the year at $19.98 billion dollars, a 315% growth.\u00a0<\/p>\n This growth was particularly exacerbated in the last quarter of 2023 and continued into 2024. The TVL grew by $1.18 billion in the first three days of January to reach $21.16 on January 3, its current all-time high.<\/p>\n At the time of writing, the TVL is now at $20.41\u200abillion, still up by 3.82% in the past seven days. A large fraction of this layer-2 TVL can be attributed to Arbitrum One<\/a>, with the scaling solution currently having $10.05 billion worth of cryptocurrencies locked.\u00a0<\/p>\n OP Mainnet<\/a>, formerly called Optimism, is second with a current TVL of $5.84 billion. 57% of this TVL is composed of OP tokens, compared to Arbitrum One, whose ARB token constitutes only 36% of the TVL.\u00a0<\/p>\n\n This massive growth shows that Ethereum users are flocking to layer 2 networks to escape high gas fees and congestion on the mainnet. Ethereum\u2019s TVL also witnessed steady growth throughout the year, adding $7.6 billion in the last quarter of 2023. Data from DeFiLlama <\/a>shows the TVL on Ethereum is now at $28.532 billion.<\/p>\n However, Ethereum has seen its daily active addresses and transaction count plunge in the last few months. Data from Artemis <\/a>revealed the network is currently being surpassed by Solana and Sui in terms of daily transaction count. Recent competition from Solana<\/a> prompted an analyst to describe Ethereum<\/a> as digging its own grave by relying too much on its layer-2 networks for scalability.<\/p>\n Some layer-2 chains are also currently processing more transactions than Ethereum itself. L2BEAT puts the monthly transactions on zkSync Era and Arbitrum <\/a>at 39.91 million and 35.54 million respectively, ahead of Ethereum\u2019s count of 33.91 million transactions.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n The total value locked (TVL) on Ethereum layer-2 networks recently hit a new all-time high in January, a testament to the continued adoption of Ethereum. Layer 2 networks sit on top of the Ethereum blockchain and help scale it by processing transactions off-chain before sending data back to the main blockchain.\u00a0<\/p>\n According to data from L2BEAT<\/a>, a layer-2 analytics platform, the TVL on these scaling solutions recently reached an all-time high of $21.16 billion, representing a 340% growth from the same day last year.\u00a0<\/p>\n 2023 was a great year for Ethereum, as the altcoin and its scaling solutions registered a steady increase in TVL despite strong competition<\/a> from other networks like Solana and Cardano. Data from L2Beat shows the TVL on these scaling solutions started in 2023 with $4.81 billion but grew steadily throughout to end the year at $19.98 billion dollars, a 315% growth.\u00a0<\/p>\n This growth was particularly exacerbated in the last quarter of 2023 and continued into 2024. The TVL grew by $1.18 billion in the first three days of January to reach $21.16 on January 3, its current all-time high.<\/p>\n At the time of writing, the TVL is now at $20.41\u200abillion, still up by 3.82% in the past seven days. A large fraction of this layer-2 TVL can be attributed to Arbitrum One<\/a>, with the scaling solution currently having $10.05 billion worth of cryptocurrencies locked.\u00a0<\/p>\n OP Mainnet<\/a>, formerly called Optimism, is second with a current TVL of $5.84 billion. 57% of this TVL is composed of OP tokens, compared to Arbitrum One, whose ARB token constitutes only 36% of the TVL.\u00a0<\/p>\n This massive growth shows that Ethereum users are flocking to layer 2 networks to escape high gas fees and congestion on the mainnet. Ethereum\u2019s TVL also witnessed steady growth throughout the year, adding $7.6 billion in the last quarter of 2023. Data from DeFiLlama <\/a>shows the TVL on Ethereum is now at $28.532 billion.<\/p>\n However, Ethereum has seen its daily active addresses and transaction count plunge in the last few months. Data from Artemis <\/a>revealed the network is currently being surpassed by Solana and Sui in terms of daily transaction count. Recent competition from Solana<\/a> prompted an analyst to describe Ethereum<\/a> as digging its own grave by relying too much on its layer-2 networks for scalability.<\/p>\nEthereum Layer-2 Networks Hit New Milestone<\/h2>\n
State Of The ETH Network<\/h2>\n
Ethereum Layer-2 Networks Hit New Milestone<\/h2>\n
State Of The ETH Network<\/h2>\n