- Total TVL has increased by more than 205% from $16.6 billion in November 2023.
- The increase to more than $51 billion TVL was mainly caused by Arbitrum One and Base.
Investor interest in assets on the Ethereum network is driving the ecosystem’s value rise. The cumulative total value locked (TVL) in Ethereum layer-2 (L2) networks has surpassed $51.5 billion, setting a new record. According to L2beat statistics, total TVL has increased by more than 205% from $16.6 billion in November 2023.
If the dominant smart contract network, Ethereum, is to become more scalable, L2 scaling solutions are a must. The L2s lessen the burden on the Ethereum mainnet in terms of both cost and waiting time by executing transactions off-chain on secondary networks.
L2 Industry’s Growing Maturity
Despite the many advantages, some in the industry worry that L2s may be “cannibalistic” to the Ethereum mainnet’s income and put a damper on Ether’s price potential. The milestone does bring liquidity fragmentation issues, but it is also an indication of the L2 industry’s growing maturity.
The increase to more than $51 billion TVL was mainly caused by Arbitrum One and Base. Arbitrum, the dominant L2, has 35% of the entire TVL in the L2 ecosystem, which is valued at about $18.3 billion.
With little more than 22 percent of all L2 TVL, Base, the second-largest L2 network, has $11.4 billion in TVL. In the seven days before November 28th, Arbitrum’s TVL surged by over 12% and Base’s TVL by over 11.4%.
As Base’s TVL hit $10 billion for the first time, the number of transactions per second (TPS) soared over the record 106 on November 26. Thanks in large part to the current bull cycle’s obsession with memecoin, the total number of Base transactions has surpassed 1 billion.
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