Ethereum’s Layer Two TVL hits all-time high

The Total Value Locked (TVL) on the Ethereum Layer Two (L2) network has risen to a new high as gas fees continue to rise.

Layer 2 analytics platform L2conquer now reports that the total amount of ETH that is blocked across various L2 protocols and networks has reached an all-time high of $ 5.64 billion.

L2 scaling solutions offer much higher transaction throughput and lower transaction fees, and in November they took on the highest average fuel fee in the history of the Ethereum network.

Use the new ATH in $ ETH locked up in class2

pic.twitter.com/0971sAdS16

– Evan Van Ness (@evan_van_ness) November 22, 2021

Arbitrum has a large share of the L2 market at $ 2.67 billion, or about 45% of the total.

The decentralized futures exchange dYdX ranks second with TVL at $ 975 million and Loopring L2 DEX ranks third with $ 580 million, but its own LRC token makes up most of the value.

Grade 2 TVL has more than doubled since early October, a 110% increase from $ 2.68 billion from current levels.

Related: Binance opens Layer 2 ETH custody accounts with Arbitrum A Single Integration

The average Ethereum transaction fee is currently around $ 40, according to Bitinfocharts. They hit their second high of around $ 65 on November 9 and have rallied 700% over the past four months.

Gasoline prices vary by operation, a simple ERC-20 token transfer could currently cost around $ 45, and a more complex smart contract interaction or uniswap swap could cost $ 140 in Etherscan.

Registering a name with the Ethereum Name Service can cost hundreds of dollars in gas, even though the actual domain name costs just a few dollars a year.

Multihain-compatible DeFi platforms have seen record inflows since October as investors and developers try to avoid the Ethereum network due to rising gasoline fees.