The TVL of Ethereum Layer 2 projects increased 600% from Q3 to Q4 of 2021, surpassing a peak of $7.17 billion on Nov 25th, 2021. The highest TVL as of Dec 11th was Arbitrum ($2.4 billion), followed by dYdX ($980 million), with Boba Network in third, with a TVL of $770 million.
Footprint Analytics: Layer 2 TVL
Footprint Analytics: TVL Share by Layer 2 Protocols
As the number of users on Ethereum grows, network congestion and high gas fees are becoming a primary problem for applications. As the demand for Ethereum increases, alleviating the problem has become a top priority. Vitalik Buterin presented “A rollup-centric Ethereum roadmap” at a conference on Oct. 26, implying that Layer 2 is the future of Ethereum scaling.
What is Layer 2?
The purpose of layers is to relieve pressure by expanding the Ethereum network’s capacity. Layer 2 is a scaling solution that builds and improves upon Layer 1.
Layer 1: Improvements to the blockchain itself to improve capabilities, e.g. on-chain
We współpracy z: https://cryptoslate.com/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem/
