Optimism Hits $1 Billion Total Value Locked (TVL)

Total value locked (TVL) on Optimism, a layer-2 scaling solution for the Ethereum blockchain, has increased 284% in the last month, according to data from DefiLlama. Users lending and borrowing assets on Aave through Optimism’s layer-2 chain make up the vast majority of TVL.

Optimism TVL Surges

According to data pouring in from DefiLlama, total value locked (TVL) on Optimism, a layer-2 scaling solution for Ethereum, has increased by 284% over the past month. This achievement mainly comes from lending activities on Aave.

As a layer 2 Ethereum blockchain, Optimism extends the ecosystem through Rollups, in other words off-chain computation to speed up transactions. Transactions are saved on Optimism and completed on Ethereum.

Apparently surrounding The Merge consolidation has driven a significant inflow of capital into Ethereum products in a row over the past 7 weeks, according to CoinShares. Ethereum has set the date to implement this historic moment on September 19. The successful event of Ethereum developers testing on the Goerli testnet on Thursday, August 11 further confirms that The Merge will take place as planned.

The effect that the Merge will have on the market value of Ethereum is the subject of intense speculation. ETH was up nearly 12% in the 24 hours prior to the test consolidation and is trading at $1,873 at press time.

“Currently, if Ethereum architecture and rollups are combined, Ethereum’s current transaction throughput levels of 15–45 TPS can scale up to 1,000 – 4,000 TPS.”

Ally Zach, researcher at Messari, said

This is also the reason why the OP token price has skyrocketed 300% in just over a month and is currently trading around the $1.64 mark.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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