According to Odaily, the recent increase in the price of Ethereum (ETH) has led to a substantial short-term growth in the total value locked (TVL) in Layer 2 networks. Data from L2Beat indicates that the TVL of Blast has reached a historic high of $31.6 billion, marking a 19.22% increase in just seven days.
The Layer 2 network, a secondary framework or protocol built on top of an existing blockchain, is designed to solve the scalability issues of its underlying network. The rise in the price of ETH, the native cryptocurrency of the Ethereum blockchain, has had a significant impact on the TVL of these Layer 2 networks.
Blast, a Layer 2 solution, has seen its TVL surge to a record $31.6 billion. This represents a significant increase of 19.22% over the course of a week. The growth in TVL indicates an increase in the amount of assets being locked in the network, which is a positive sign for the overall health and activity of the blockchain.
The rise in the price of ETH and the subsequent increase in TVL in Layer 2 networks like Blast is a testament to the growing interest and confidence in the Ethereum blockchain and its Layer 2 solutions. This trend is expected to continue as more users and developers turn to Layer 2 solutions for their scalability needs.
