Ethereum L2s Surpass All Other Blockchains by TVL: Details
Foundation contributor Josh Stark recently observed a significant milestone for Ethereum’s second-layer network ecosystem. In 2021, 20% of his followers were certain that this “flippening” would never occur.
Ethereum (ETH) L2s Achieve Historic Milestone
At the beginning of 2024, the total value locked in Ethereum-based L2 protocols surpassed that of all non-Ethereum blockchains. Ethereum L2s accounted for $20.7 billion in equivalent, while the rest of the blockchains amassed $19.6 billion, as noted by Stark on Jan. 4, 2024.
Stark emphasized that the metrics cannot be directly compared. For second-layer networks, the indicator refers to the sum of assets on L2, including native tokens, while for L1s, it reflects the sum of assets locked in dApps on a specific blockchain.
He utilized L2Beat’s data to track second-layer blockchains and DefiLlama to analyze non-Ethereum L1s.
It’s worth noting that back in September 2021, he polled his audience about the date of the “L2-over-L1” flippening. While the majority believed it could happen in 2022, 20% were convinced it would never occur.
The L2s ecosystem was 20 times smaller than the L1s at the time of the initial poll. During the crypto winter, this gap widened further, reaching its peak during the Terra/Luna collapse in Q1, 2022.
Arbitrum (ARB) Dominance Nears 50%
According to L2Beat, Ethereum’s L2s ecosystem achieved an all-time high in TVL on Jan. 2, 2024, surpassing $20.78 billion in equivalent, marking a 330% increase in just one year.
The L2s landscape remains heavily concentrated, with only five networks—Arbitrum (ARB), OP Mainnet (Optimism, OP), Base, Metis Andromeda, and Manta Pacific—responsible for over 90% of its TVL.
Arbitrum (ARB), the largest Ethereum-based L1, is regaining its dominance after a slight decline, inching closer to the 50% mark. Meanwhile, OP Mainnet, the closest competitor, holds a 28.65% share, according to L2Beat.
This article was originally published on U.Today
