Record level reached by the TVL of Ethereum Layer 2 networks

The total locked value of Ethereum Layer 2 networks hit an all-time high of $10 billion on April 14. The data was published by L2Beat. Since then, the TVL has shrunk to around 9.29 billion.. This is still double what it was in January.

CoinDesk announcing on Twitter that Total Locked Value of Ethereum Layer 2 Networks Reaches All-Time High $10 billion on April 14

A Rise in Ethereum Layer 2 TVL Following the Ether Price Rise

The price of ether has seen a rise this April. The total value locked or TVL of Ethereum Layer 2 has also increased. Layer 2 saw its TVL increase until it reached $10 billion on April 14. This is his highest level to date. Driven by an overall decline in the crypto market, TVL declined to stabilize at around $9.29 billion. This is still more than double what it was at the start of the year. The data comes from L2Beatthemselves reported by CoinDesk.

As a reminder, TVL represents the overall value of crypto assets deposited in a decentralized finance (DeFi) protocol or in DeFi protocols in general. The fact that the TVL is growing reflects a growing interest in scaling systems.

Layer 2 networks dominating the movement

Arbitrum One leads Layer2 with over 66% market share, according to L2Beat data. In second position, you have Optimism which follows with more than 20% of market share. Both networks have contributed a lot to the reduction of transaction costs.

This year, Arbitrium, TVL’s fourth largest blockchain, overtook Ethereum for daily transactions. It averaged around 1.2 million in March compared to the 1.1 million transactions on Ethereumaccording to block explorers Arbiscan and Etherscan.

TVL may reflect investor interest in DeFi systems, but caution should be exercised as it is often used to attack networks. Anyway, we notice that interest in cryptocurrencies is starting to grow again. Perhaps we are witnessing the first signs of the arrival of a future bull run?

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