Ethereum L2s Surpass All Other Blockchains in TVL: Details
Josh Stark, a contributor to Foundation, recently highlighted a significant milestone for Ethereum’s second-layer network ecosystem. In 2021, 20% of his followers doubted that this “flippening” would ever 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 other blockchains amassed $19.6 billion, as reported by Stark on January 4, 2024.
Stark emphasized that the comparison between second-layer networks and L1s should be taken with caution, as the metrics differ. For L2s, the indicator refers to the sum of assets on L2, including native tokens, whereas for L1s, it reflects the sum of assets locked in dApps on the respective blockchain.
He utilized L2Beat’s data to track second-layer blockchains and DefiLlama to analyze non-Ethereum L1s.
Interestingly, in September 2021, Stark conducted a poll asking his audience about the expected date of the “L2-over-L1” flippening. While the majority predicted 2022, 20% believed it would never happen.
During the first voting, the L2s ecosystem was 20 times smaller than the L1s. The gap widened further during the crypto winter, reaching its peak amid the Terra/Luna collapse in Q1, 2022.
Arbitrum (ARB) Dominance Nears 50% Once Again
According to L2Beat, Ethereum’s L2 ecosystem reached an all-time high in TVL on January 2, 2024, surging above $20.78 billion in equivalent and experiencing a 330% increase in just one year.
The L2s landscape remains heavily concentrated, with five networks—Arbitrum (ARB), OP Mainnet (Optimism, OP), Base, Metis Andromeda, and Manta Pacific—accounting for over 90% of its TVL.
Arbitrum, the largest Ethereum-based L1, is regaining its dominance after a minor decline and is on the verge of the 50% mark. Meanwhile, OP Mainnet, its closest competitor, holds a 28.65% share, as per L2Beat.
This article was originally published on U.Today
