Ethereum L2s Surpass All Other Blockchains by TVL: Details
According to Foundation contributor Josh Stark, the Ethereum-based ecosystem of second-layer networks achieved a major milestone. This achievement comes after 20% of Stark’s followers were convinced that this “flippening” would never occur.
Ethereum (ETH) L2s Make Historic Strides In the early days 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, compared to the rest of blockchains which accumulated $19.6 billion, as noted by Stark on Jan. 4, 2024.
Stark emphasized that the metrics should not be considered exactly the same: For second-layer networks, the indicator reflects the sum of assets on L2, including native tokens. On the other hand, for L1s, the metrics represent the sum of assets locked in dApps on a specific blockchain.
The analyst utilized L2Beat’s data to monitor second-layer blockchains and DefiLlama to assess non-Ethereum L1s.
Interestingly, in September 2021, Stark polled his audience about the potential date of the “L2-over-L1” flippening. While the majority believed this event would take place in 2022, 20% were convinced it would never happen.
At the time of the first voting, the L2s ecosystem was 20 times smaller than the L1s. During the crypto winter, this gap widened even further, reaching its peak amidst the Terra/Luna collapse in Q1, 2022.
Arbitrum (ARB) Dominance Nears 50% According to L2Beat, Ethereum’s L2s ecosystem reached 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—accounting for over 90% of its TVL.
Arbitrum (ARB), the largest Ethereum-based L1, is regaining its dominance after a slight decline. At present, it is on the verge of the 50% threshold.
For its closest competitor, OP Mainnet, this figure stands at 28.65%, according to L2Beat.
This article was originally published on U.Today
