Ethereum’s Layer 2 sector continues its exponential growth. The TVL of all Layer 2 networks climbed above the $35 billion mark for the first time in February, reaching a new record high. The sector is likely to target $40 billion next. If conditions on the crypto market continue to be favorable, continued growth in this regard can be expected as more and more investors look for cheaper alternatives to the ETH mainchain.
Especially since projects like Altlayer now make it possible to launch new L2 chains cost-effectively and easily. Ethereum’s Dencun upgrade should also increase the attractiveness for developers of numerous DeFi platforms to launch their product on the L2s instead of on alternative Layer 1 networks such as Solana, Avalanche or Sui.
Ethereum is scaling faster and faster
In parallel, the ETH mainchain’s scaling factor has reached new heights, with L2 networks now processing over eight times as many transactions as the mainchain.
This impressive increase in transaction capacity underlines Ethereum’s role as a leading platform for smart contracts and DeFi applications and reflects growing user adoption.
You can find out what you should know about the Layer 2 sector of Ethereum and what the cryptocurrency is doing in general in the new BTC-ECHO Ethereum Report.
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