More people are jumping on Ethereum’s Layer 2 networks. These networks now hold a whopping 14.65 million ETH, worth over $33 billion. In just one year, this locked-up amount has more than doubled, growing by 109.61%, according to data from L2Beat.
Layer 2 networks make Ethereum faster and cheaper than its leading network. They’re catching on fast. In the last month alone, ETH in these networks grew by 6.75%. This week, it hit a new record of 14.77 million ETH.
Leon Waidmann, an expert who studies blockchain data, says, “More and more people are using Ethereum’s Layer 2, and it’s not slowing down.” He thinks this growth makes Ethereum more valuable in many ways, not just in price.
The total value locked (TVL) in Layer 2 networks has also shot up in dollar terms. It’s now $33.95 billion, a massive 199.03% increase from last year.
But it’s not all smooth sailing. The dollar value has dropped recently because Ethereum’s price has decreased. The current $33.95 billion is much less than the $48.6 billion peak in June.
Ethereum’s Future: Layer 2 Networks Drive Growth Amid Market Volatility
So, while the amount of ETH locked up keeps growing to new highs, the crypto market’s wild swings affect its dollar value.
Still, things are looking up overall. The steady increase in ETH on Layer 2 networks shows that more people trust Ethereum’s ability to grow and want to use its decentralized apps and finance tools.
This growth is a big deal for Ethereum. It means the network is scaling up, handling more transactions, and becoming more useful for more people. As Layer 2 networks keep growing, they could help Ethereum become even more critical in cryptocurrencies and blockchain technology.
The rise of Layer 2 networks is changing how people use Ethereum. It’s making it easier and cheaper for everyone to get involved, from big companies to everyday users. As these networks keep growing, we might see even more exciting changes in how people use and think about Ethereum.
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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risk.
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