Ethereum Layer2 Lock-up Volume reaches $6.32 billion

02/21/2023 20:25 • NFT Newsflash • 141 views

According to reports, L2BEAT data showed that the total lock-up volume on Ethereum Layer2 was US $6.32 billion, up 14.9% in the past 7 days. Among them, the largest amount of lock-in is the expansion plan ArbitrumOne, which is about $3.34 billion, accounting for 52.84%, followed by Optimism, which is $1.94 billion, accounting for 30.65%.

The total lock-up volume on Ethereum Layer2 rose 14.9% in the past 7 days

Interpret the above information:

The Ethereum blockchain is scaling up with Layer2 technology which is a secondary chain connected to the Ethereum main network. These chains allow for faster transactions and increased scalability for the Ethereum blockchain. According to L2BEAT data, the total lock-up volume on Ethereum Layer2 was US $6.32 billion, up 14.9% in the past 7 days.

The lock-up volume is the total sum of tokens or assets that have been locked or deposited into smart contracts on the Ethereum Layer2 network. This is an indication of the growing interest in Ethereum Layer2, as more and more token holders are migrating their assets to these secondary chains.

The largest amount of lock-in is the expansion plan ArbitrumOne, which accounts for 52.84% of the total lock-up volume, standing at $3.34 billion. The platform that stands second in the list is Optimism with a lock-up volume of $1.94 billion which accounts for 30.65% of the total lock-up volume. These platforms are considered as the most valuable and scalable solutions for Ethereum users.

Due to the high activity and growth of the Ethereum network, the gas fees for transactions have increased significantly. Ethereum Layer2 networks offer users cheaper and faster transactions. This fact has contributed to the shift of a large number of Ethereum users to these secondary chains. As more users migrate to Layer2, it leads to more expansion and development of these networks, which creates a virtuous cycle for Ethereum’s growth.

In conclusion, the growing lock-up volume for Ethereum Layer2 is an indication of the increasing adoption of these networks. Optimism and Arbitrum are leading the way as they offer cost-effective and scalable solutions for users with smart contracts on the Ethereum network. The Ethereum Layer2 is expected to be the next big thing in the DeFi ecosystem, making Ethereum a more accessible choice for a larger audience.

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Ethereum Layer2 Lock-up Volume reaches $6.32 billion

The total lock-up volume on Ethereum Layer2 rose 14.9% in the past 7 days

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