Ethereum Layer 2 solutions are contributing to new ideas in the blockchain industry, increasing throughput at lower costs on the Ethereum blockchain. L2BEAT provides data based on which it is clear that the total value of assets locked in Ethereum Layer 2 is nearly $38 billion TVL.
Let’s look closer at the top Ethereum Layer 2 projects and their performance according to the current total value locked.
Arbitrum (ARB) and Base Leading the Chart: OP, BLAST, and MNT Following Closely
Arbitrum retains its rank as the Layer 2 ecosystem leader with a TVL of $14.3 billion. This solution provides scalability since transactions are moved from the main net to Layer 2 of the Ethereum network. Arbitrum’s TVL has increased by 3.05% within the week, and the fully diluted market capitalization currently sits at $6.21 billion, making it the largest Ethereum Layer 2.
Decentralized application platform Base which is developed by Coinbase, as an Ethereum Layer 2 solution, has a TVL of $7.02 billion. It has shown a spectacular 8.48 percent increase in its TVL in the last week. While Base has not disclosed its fully diluted market capitalization, it quickly became the second ETH Layer 2 solution in terms of TVL.
Following closely is Optimism, another well-established Layer 2 solution that secured $6.46 billion of TVL. This platform uses optimistic rollups to enhance Ethereum’s scalability.
A new platform in the market, Blast has achieved $1.56 billion in TVL and has increased in value by 4.58% in the last week.
Mantle and Scroll both hold a TVL of $1.28 Billion, putting them in fifth place; however, Mantle offers better privacy and zk-rollup scalability, while Scroll is built for private solutions and the scalable Ethereum experience for its users.
ZK is one of the leading active zk-rollup solutions at the moment, with its total value locked at $920 million. ZKSync improves Ethereum’s scalability through zero-knowledge proofs.
Linea and Starknet are lower in the chart with TVL of $809 million and $720 million, respectively.
Lastly, Manta Network which provides Layer 2 solution for improved privacy has $597 million TVL and has increased by 12.1% in the last week. This puts its market cap at about $914 million, which shows the growing need for privacy products on Ethereum.
Wrap up!
Layer 2 solutions for Ethereum are significant when it comes to increasing its capacity and speed of transactions. The increase in the total value locked on these platforms shows just how valuable these platforms are in the current blockchain ecosystem. From Arbitrum to up-and-coming solutions like Blast and Starknet, Layer 2 solutions are the game changers that will determine Ethereum’s scalability.
