TVL in Ethereum’s Layer 2 protocols hits a new record as ETH gas fees continue to rise

The Total Value Locked (TVL) on Ethereum‘s Layer 2 networks has risen to a new record as gas charges keep rising, leading to greater adoption.

Analytics platform L2beat now reports that the total value locked across various L2 protocols and networks has reached an all-time high of $ 5.64 billion.

L2 scaling solutions offer much higher transaction throughput at lower transaction fees and are in widespread use in November, the highest average gas fees in the history of the Ethereum network.

Arbitrum has a large share of the L2 market with a TVL of $ 2.67 billion, or about 45%. The decentralized derivatives exchange dYdX is in second place with 975 million US dollars and Loopring L2 DEX is in third place with 580 million US dollars, although its own LRC token makes up the largest part of the blocked value.

TVL Layer 2 has more than doubled (or 110%) from $ 2.68 billion to current levels since early October.

The average Ethereum transaction fee is currently around $ 40, according to Bitinfocharts. It hit a second high of around $ 65 on November 9th, up 700% over the past four months.

Gas prices vary based on activity, a simple ERC-20 token transfer can currently cost around $ 45, and a more complex smart contract interaction or uniswap swap can cost $ 140, according to Etherscan.

Multi-chain compatible DeFi platforms have seen record inflows of money since October as investors and developers try to avoid the Ethereum network due to rising gas fees.

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