Crypto Mania

Total Value Locked (TVL) Surge in Ethereum Layer-2 Fuels DeFi Growth

  • The L2 ecosystems TVL increased by 10.36% in US dollars over the last week.
  • The TVL in all Layer-2 Ethereum platforms hit a record high of over $12 billion.

DeFi’s total value locked, a key metric for programmable blockchains, is on the rise in the second layer solutions market, which is dominated by Ethereum. In spite of a lacklustre market, the net TVL of the 30 most popular platforms has increased by 32% over the past four months.

The total value locked (TVL) in all Layer-2 Ethereum (ETH) platforms hit a record high on October 27, 2023. It spiked to over $12 billion for a short period of time before settling around $11.87 billion. At $11.85 billion, the previous record high was set on April 17.

Even though the cryptocurrency market has been relatively flat over the past year, its value in US dollars has increased by more than 114% over that time. After briefly surpassing 3.5 million ETH locked a year ago, the ecosystem has now reached 6.72 million ETH.

Whale Dominated

The L2 ecosystem increased TVL by 10.36% in US dollars over the last week. Even more impressive gains were made by a collection of the largest L2s. Moreover, in the same time frame, the price of Ethereum (ETH), the most important asset for L2s, increased by 10.14 percent. Two days ago, it dropped below $1,836 for the second time in over a month.

On Ethereum, meanwhile, the L2 market is still “whale-dominated.” Over 90% of the ecosystem’s TVL is generated by the two largest networks, Arbitrum and OP Mainnet. The third place is held by the fastest-growing L2, Base, with a share of 4.83 percent. 

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