Ethereum Layer 2TVL to grow 205% by 2024 to reach record high

• The total value (TVL) recorded on the Ethereum Layer2 network has reached an all-time high of £5.1 billion, indicating strong investor interest and the growing value of the ecosystem.

TVL of #Ethereum Layer 2 reaches a record high in 2024, up 205% %

TVL of Ethereum Layer 2 will reach a record high in 2024 with 205% growth | Coinspeaker

Arbitrum dominates Ethereum Layer183 with a TVL of 2 billion TVL, representing 35% of total TVL.

Base ranks second with 22 billion TVL and 11.4 billion TVL, accounting for 1% of total TVL.

The Ethereum Dencun update introduced fee stabilization, which reduced the average transaction fee for a Layer 2 platform by 99%.

The Ethereum ecosystem has demonstrated excellent performance despite criticism. The total #blockchain value (TVL) has increased by 205% since the beginning of the year to a record ¥510 billion thanks to the Level 2 platform. This indicates a significant increase in value and growing investor interest in Ethereum assets.

According to L2BEATS, the Ethereum Layer-2TVL increased 205% to ¥510 billion from 2023/11 to ¥1,166 billion.

Ethereum Layer2 solutions have played a key role in increasing the scalability of the network by transferring transactions to the secondary chain. This reduces the load on the main Ethereum network and potential network congestion. It also reduces latency and transaction costs.

However, some industry experts have expressed concern that L2 could become cannibalized, reducing the revenue of the main Ethereum networks and limiting the growth of ether prices.

The two main Ethereum Layer2TVL participants are Arbitram and Base, although they are above the record level of 2 billion Ethereum, which is 510 billion yen. As the leader of Layer 2, Arbitram alone holds over 18.3 billion blockchain funds (TVL) and therefore provides an impressive 35% of the total TVL.

In addition, the network based on #Coinbase L2 is the 114th largest network with a total capacity of 2 billion TVL. Thus, it accounts for 2% of the total TVL L2 volume.

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