Ethereum layer two hits all-time high as fees soar

The total value locked (TVL) of Ethereum layer two has hit an all-time high of $5.6bn

Ethereum layer two                                 
L2beat reports that the total value locked of Ethereum layer two has hit an all-time high of $5.6bn – Photo: Shutterstock
                                

Recent analytics from reporting platform L2beat have shown that the total value locked of Ethereum layer two has hit an all-time high of $5.6bn, as gas fees continue to rise.

The total value locked (TVL) indicates the total amount of Ethereum that is secured across different layer two protocols and networks. The TVL for these protocols was around $1bn in September, which means there has been a steep increase in just a few months.

According to Cointelegraph, layer two TVL picked up momentum last month and has more than doubled since the beginning of October, surging 110% from $2.68bn to current levels. Compatible DeFi platforms have also witnessed record-high inflows as users try to avoid the Ethereum network due to soaring gas fees.

What is Ethereum layer two?

Layer-2 refers to a platform or network that operates on top of an underlying blockchain protocol to improve scalability and efficiency. 

The Ethereum layer two platform and technology are imperative for addressing problems with network performance. Scalability, for example, is a key area that is still under development for Ethereum: solutions entail extracting the majority of the data so that the blockchain is less congested and ultimately more scalable.

Binance launches Arbitrum deposits 

Binance has become one of the first centralised platforms to provide layer two support for its Ethereum deposits, as it completes integration of the Arbitrum One core network. 

The move, which aims to preserve the global dominance of the crypto exchange, will allow users to transfer ether from their Binance wallet straight to the layer two network.

Further reading: How many Ethereum are there?

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image