The money deposited in these solutions is breaking all-time highs in November. Arbitrum, dYdX, and Optimism are some of the most used options.
The total locked value (TVL) in the second layers of Ethereum, in which scalability tools such as rollups work, approached $ 5.25 billion. This event shows an almost constant increase, reaching 28% in the last 30 days.
According to a report by the L2beat site, 28% is the total value locked in the second layer of Ethereum. In the last week, this figure has increased by 7.78%, according to the same source.
This increase constitutes an all-time high in the said index for the Ethereum network, confirming its year-on-year growth. Rollups had over USD 8 million, which is 0.15% of the current total a year ago.
A similar data had been provided last Monday, November 8, by none other than Evan Van Ness, in a publication on his Twitter account. Van Ness is the director of decentralization at the Ethereum Foundation. The representative said on that occasion that the second layer surpassed USD 5 billion for the first time in its history.
Beyond the milestone reached, these locked funds do not speak for a significant number of Ethereum’s market capitalization. According to CoinMarketCap, this figure is $ 559 million while the TVL in its second layer runs in parallel with just under 1%.
However, the increase has been showing some responses and almost an uninterrupted flowing in the last semester, a trend that seems to take hold as new developments continue to show up on the Ethereum network, creating an environment that makes these second layer solutions more necessary.
Most Used Ethereum Second Layer Solutions
Arbitrum is one of the most used rollups. According to the L2beat site, the total value locked in this second layer solution is $ 2.8 billion, which speaks for 53.68% of this market.
The second place in the ranking is for dYdX, an exchange with USD 968 million. This figure represents 18.44% of the total deposited in the layers of Ethereum.
The rank finally meets its completion with Loopring, a rollup in which USD 489 million got deposited, considering that a large percentage (76%) comes from money invested in the Loopring token (LRC). Therefore, if we talk about funds purely invested in rollups, Optimism appears in third place, another exchange with at least a TVL of USD 488 million.
What are the Second Layers of Ethereum?
The second layers in Ethereum are solutions that allow more efficient organization when it comes to transactions that could get confirmed on the first network.
This network, also known as the mainnet, is usually a very congested site; precisely because of the high demand, and it is usually more expensive to operate. This struggle takes place because said blockchain is the one used to develop decentralized finance applications (DeFi), smart contracts, and non-fungible tokens (NFT), among other things.
All these products have had exponential growth since 2020, which has resulted in massive exploitation of the Ethereum network. Tools such as rollups allow grouping thousands of minor transactions and confirming them all together on the first network.
It is possible to reduce their cost and the time necessary to execute these rollups. This situation constitutes a scalability solution that, in addition to improving Ethereum applications in the future, as experts point out, does not harm network security, which is also crucial for the evolution of the cryptocurrency.
By: Jenson Nuñez
