Ethereum

Total Value Locked (TVL) Locked in Ethereum Layer 2 Solution reaches new all-time high

In 2021, TVL (Total Value Locked) in the Ethereum Layer Two (L2) network has grown steadily as the acceptance of such protocols increases. Layer 2 is the general term for solutions for scaling applications in the Ethereum Mainnet (Layer 1).

By removing transactions from the mainnet, these Layer 2 solutions serve to flatten the mainnet and offer much higher transaction throughput and, most importantly, lower transaction fees. These benefits have helped them gain more adoption in 2021.

TVL in Ethereum solution L2 meets ATH

As of January 1st, only $ 48.2 million is locked on all Ethereum L2 solutions. However, as of November 21, the cumulative value of the L2 solutions is now $ 6.13 billion – the highest ever.

The new ATH solution for Ethereum L2 comes after rising 13.26% over the past 7 days.

Total Value Locked (TVL) in Ethereum L2 from November 21. Source: L2Beat

The new ATH of the L2 solutions arose as a result of the increased capital inflow from institutions into these protocols. For example, in September we reported that around $ 2 billion had gone into arbitrum.

Top L2 contributor

Arbitrum, an L2 solution that enables Ethereum users to process their transactions over the Ethereum mainnet, is the largest contributor at $ 2.67 billion, or 43.5%.

The decentralized derivatives exchange dYdX is the second largest contributor to L2 at $ 975 million, while the Boba Network ranks third at $ 863 million. Looprings L2 DEX ranks fourth at $ 580 million.

Why should you care?

L2 solutions play an essential role in the growth of the Ethereum network, a fact that is becoming more apparent with the rapid growth of L2 solutions.

Coincu

Recent Posts

Buyers Rush to Maximise Gains with BlockDAG’s 100% Bonus Offer; Plus, ETH Holds Strong as Solana Challenges Rivals

Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…

1 hour ago

Thai Police Corruption Case Involving Officers and Extortion

Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…

4 hours ago

SafePal Telegram Wallet Launches with Swiss Bank Accounts and CeDeFi

SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…

5 hours ago

Sheetz Crypto Payments Now Accepted at Over 750 US Locations

Sheetz crypto payments: 750+ US stores now accept Bitcoin, Ethereum, and more, rewarding customers through…

5 hours ago

Zhu Su Wife Sells Singapore Mansion for $38 Million

Zhu Su’s wife sells Singapore mansion for $38.5 million amid heightened financial scrutiny on Three…

6 hours ago

Bitcoin Spot ETF Outflows Hit $54.9M, First Decline in 7 Days

Bitcoin Spot ETF Outflows Hit $54.9M on Nov 1, marking the first decline in a…

8 hours ago

This website uses cookies.