{"id":205457,"date":"2021-11-23T10:00:47","date_gmt":"2021-11-23T10:00:47","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=205457"},"modified":"2021-11-25T14:34:26","modified_gmt":"2021-11-25T14:34:26","slug":"theres-over-4-2-billion-locked-in-ethereum-layer-2-protocols","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/theres-over-4-2-billion-locked-in-ethereum-layer-2-protocols\/","title":{"rendered":"There&#8217;s over $4.2 billion locked in Ethereum layer-2 protocols"},"content":{"rendered":"<p class=\"p1\">According to data from analytics platform L2BEAT, there has never been more value locked in Ethereum's layer-2 scaling solutions.<\/p>\n<p class=\"p1\">With increasing gas fees driving the adoption of networks such as Arbitrum, Optimism, and Loopring, layer-2 TVL increased by more than 44% in less than a month.<\/p>\n<h2 class=\"p3\"><b>Users pour their money into L2s as Ethereum fees skyrocket<\/b><\/h2>\n<p class=\"p1\">With the average transaction fee on Ethereum inching dangerously close to its all-time high, the network has become increasingly unattainable for the average user.<\/p>\n<p class=\"p1\">And while the price of transactions has managed to consolidate around $36, data from BitInfoCharts showed that the average transaction fee on Ethereum cost over $62 at the beginning of November.<\/p>\n<figure id=\"attachment_205458\" aria-describedby=\"caption-attachment-205458\" style=\"width: 1474px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-205458 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/ETH-AVG-FEE.png\" alt=\"ethereum average fee\" width=\"1474\" height=\"489\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/ETH-AVG-FEE.png 1474w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/ETH-AVG-FEE-300x100.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/ETH-AVG-FEE-1024x340.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/ETH-AVG-FEE-768x255.png 768w\" sizes=\"(max-width: 1474px) 100vw, 1474px\" \/><figcaption id=\"caption-attachment-205458\" class=\"wp-caption-text\">Graph showing the average transaction fee on Ethereum from January 2021 to November 2021 (Source: BitInfoCharts)<\/figcaption><\/figure>\n<p class=\"p1\">This has pushed a record number of users to the network's Layer 2 solutions, which offer drastically lower fees and much faster transaction finality.<\/p>\n<p class=\"p1\"><a href=\"https:\/\/l2beat.com\/\">According to<\/a> data analytics platform L2BEAT, the total value locked (TVL) in Ethereum's Layer2 solutions has reached its all-time high, surpassing 1.4 million ETH. At current prices, this equates to around $6.13 billion.<\/p>\n<figure id=\"attachment_205459\" aria-describedby=\"caption-attachment-205459\" style=\"width: 987px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-205459 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-17.52.46.png\" alt=\"ethereum layer2 tvl\" width=\"987\" height=\"326\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-17.52.46.png 987w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-17.52.46-300x99.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-17.52.46-768x254.png 768w\" sizes=\"(max-width: 987px) 100vw, 987px\" \/><figcaption id=\"caption-attachment-205459\" class=\"wp-caption-text\">Graph showing the total value locked (TVL) in Ethereum's Layer2 solutions (Source: L2BEAT)<\/figcaption><\/figure>\n<p class=\"p1\"><a href=\"https:\/\/cryptoslate.com\/binance-integrates-ethereum-layer-2-protocol-arbitrum-as-scaling-race-heats-up\/\">Arbitrum<\/a> accounts for the largest share of the Layer2 market, capturing just over 43% of the TVL, worth around $2.67 billion. <a href=\"https:\/\/cryptoslate.com\/coins\/dydx\/\">dYdX<\/a> ranks second with a 15% of market share worth $975 million, while the newly launched Boba Network came in third with $863 million.<\/p>\n<p class=\"p1\">The more well-known <a href=\"https:\/\/cryptoslate.com\/coins\/loopring\/\">Loopring<\/a>, Optimism, and <a href=\"https:\/\/cryptoslate.com\/coins\/zkswap\/\">ZKSwap<\/a> V2 have $580 million, $461 million, and $218 million in TVL, respectively.<\/p>\n<figure id=\"attachment_205460\" aria-describedby=\"caption-attachment-205460\" style=\"width: 1001px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-205460 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-18.36.23.png\" alt=\"top 10 layer 2 networks TVL\" width=\"1001\" height=\"425\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-18.36.23.png 1001w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-18.36.23-300x127.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/11\/Screenshot-2021-11-22-at-18.36.23-768x326.png 768w\" sizes=\"(max-width: 1001px) 100vw, 1001px\" \/><figcaption id=\"caption-attachment-205460\" class=\"wp-caption-text\">Table showing the top 10 Ethereum Layer2 solutions by total value locked (TVL)\u00a0 (Source: L2BEAT)<\/figcaption><\/figure>\n<p class=\"p1\">The data seems to support the overall market sentiment towards Ethereum. Even the industry's most prominent investors have been <a href=\"https:\/\/cryptoslate.com\/billionaire-avalanche-backer-su-zhu-stirs-up-controversy-after-ethereum-criticism\/\">vocal<\/a> about Ethereum's fee problem, with many actively exploring engaging with its competitors such as <a href=\"https:\/\/cryptoslate.com\/coins\/avalanche\/\">Avalanche<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to data from analytics platform L2BEAT, there has never been more value locked in Ethereum&#8217;s layer-2 scaling solutions. With increasing gas fees driving the adoption of networks such as Arbitrum, Optimism, and Loopring, layer-2 TVL increased by more than 44% in less than a month. Users pour their money into L2s as Ethereum fees [&hellip;]<\/p>\n","protected":false},"author":759,"featured_media":205504,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,46940],"tags":[76128,60923],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>There&#039;s over $4.2 billion locked in Ethereum layer-2 protocols<\/title>\n<meta name=\"description\" content=\"According to data from analytics platform L2BEAT, there has never been more value locked in Ethereum&#039;s Layer2 scaling solutions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/theres-over-4-2-billion-locked-in-ethereum-layer-2-protocols\/\" 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