Ethereum Layer 2 Reaches All Time High TVL

Written By Guest User

  • The total value locked (TVL) on Ethereum layer two networks has increased to new all time highs of $5.64 billion as a result from ever increasing gas fees on the main Ethereum chain.

  • Layer-two scaling solutions are created to ease congestion issues on the main Ethereum chain. These “sidechains” provide much higher transaction throughout and lower fees compared to Ethereum.

  • Arbitrum has the majority of the layer two market stake with $2.67 billion locked, equating to about 45% of the total value locked. The dYdX derivatives decentralized exchange (DEX) is the second largest layer two protocol with $975 million in TVL, and the Loopring layer two DEX is the third largest with $580 million locked. It is important to note that most of Loopring’s TVL is made up of funds invested in its own $LRC token.

  • Ethereum transaction fees are currently around $40 per transaction, and have increased by over 700% over the past four months.

Guest User
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