CoinEfficiency

Ethereum L2s Surpass Non-Ethereum Blockchains in Value Locked

Ethereum-based second-layer networks achieve a historic milestone in surpassing non-Ethereum blockchains in total value locked.
Published on 2024-01-17

Ethereum L2s Achieve Historic Milestone

In early 2024, Ethereum-based second-layer networks reached a significant milestone. The total value locked (TVL) in these networks surpassed all non-Ethereum blockchains, marking a pivotal moment in blockchain development. Ethereum L2s amassed a TVL of approximately $20.7 billion, exceeding the $19.6 billion held by other blockchains.

Comparison of L2 and L1 Metrics

The comparison between L2s and L1s is noteworthy. For Ethereum L2s, the TVL includes native tokens, whereas for L1s, it reflects the assets locked in decentralized applications on the respective blockchains. This distinction highlights the growing influence of L2 networks in the cryptocurrency landscape.

Rapid Growth of L2s

Back in September 2021, the Ethereum L2 ecosystem was significantly smaller compared to L1s. However, it has since experienced a dramatic turnaround. Despite the challenges during the crypto winter and the Terra/Luna collapse in 2022, the L2 landscape has grown substantially. By January 2024, Ethereum's L2s registered an all-time high in TVL, showing a 330% increase within a year.

Arbitrum's Dominance in the L2 Market

Arbitrum (ARB) stands as a dominant player in the Ethereum L2 ecosystem, nearing 50% market dominance. Alongside Arbitrum, other key networks like OP Mainnet, Base, Metis Andromeda, and Manta Pacific contribute significantly to the L2 TVL, collectively accounting for over 90% of the total value.

This achievement underscores the dynamic evolution of Ethereum's second-layer networks and their increasing importance in the blockchain space. As the ecosystem continues to grow, Ethereum L2s are set to play a crucial role in shaping the future of decentralized finance and blockchain technology.

What is Coinefficiency?

Coinefficiency is your go-to platform for optimizing cryptocurrency trading, investments and strategies. We provide a comprehensive suite of tools to analyze market trends, monitor price movements, and execute effective trading strategies. Whether you're a seasoned trader or new to crypto, Coinefficiency helps you maximize your profits with data-driven insights.

Why Use Coinefficiency?

  • Advanced market analytics to identify trading opportunities.
  • Compare markets relative performance.
  • Understand market cycles over time. See market levels.
  • Compare buy-and-hold, portfolio rebalancing, Dollar-Cost-Averaging trading strategies.

With Coinefficiency, you can stay ahead of the market and execute efficient trading strategies effortlessly.

Get Started with Coinefficiency

Ready to optimize your crypto investments? Take control of your portfolio with cutting-edge tools designed for both beginners and experts.