Understanding the Current Total Lockup Volume of the Ethereum Layer2 Network

04/22/2023 08:07 • Tech Ticker • 135 views

According to reports, according to L2BEAT data, the current total lockup volume of the Ethereum Layer2 network is 9.57 billion US dollars, with a decline in the past 7 days to 8.33%. Among them, the total lockup volume of the ArbitrumOne network is 6.42 billion US dollars, accounting for 67.04%; The total lock in volume of Optimism network is 1.94 billion US dollars, accounting for 20.28%, while the total lock in volume of Dydx network is 338 million US dollars, accounting for 3.53%.

The total lockdown volume of Ethereum Layer2 network dropped to $9.57 billion

Introduction

Ethereum is a blockchain network that is known for its smart contracts functionality. It has achieved massive adoption, attracting different users and developers in different applications. However, the high transaction fees and slow processing time of the Ethereum network have become a significant setback for users. To address these challenges, several Layer2 networks have emerged to provide a solution to these problems.

What is Layer2 Network?

A Layer2 network is a secondary blockchain network that runs independently of the main blockchain but is anchored to it. It scales the primary blockchain network’s transaction processing capacity, thereby enabling faster and cheaper transactions. The Layer2 network operates by batch processing transactions in groups, which reduces the processing time, leading to lower costs on Ethereum network.

Ethereum Layer2 Total Lockup Volume

According to reports, the current total lockup volume of the Ethereum Layer2 network is 9.57 billion US dollars. However, there has been a decline in the past 7 days to 8.33%. This is a clear indication that Layer2 network is not perfect, and it has its own peculiar challenges.

ArbitrumOne Network

Among the different Layer2 networks, the total lockup volume of the ArbitrumOne network amounts to 6.42 billion US dollars, accounting for 67.04% of the total lockup volume of the Ethereum Layer2 network. ArbitrumOne is known for its low transaction fees and fast processing time. It is an optimistic rollup that powers DeFi applications.

Optimism Network

The total lockup volume of the Optimism network amounts to 1.94 billion US dollars, accounting for 20.28% of the total lockup volume of the Ethereum Layer2 network. Optimism is an EVM(compatible platform) rollup approach enabling fast and low-cost execution of smart contracts.

Dydx Network

The total lockup volume of the Dydx network amounts to 338 million US dollars, accounting for 3.53% of the total lockup volume of the Ethereum Layer2 network. Dydx is an orderbook-based DEX that enables permissionless, fast, and secure trades on Layer2.

Conclusion

Layer2 networks have provided a definite solution for the high transaction fees and slow processing time of the Ethereum network. While there has been a decline in the past 7 days, the total Lockup Volume of the Ethereum Layer2 network, at 9.57 billion US dollars, indicates a growing demand for Layer2 solutions. Among the different Layer2 networks, ArbitrumOne stands out as the most preferred, with the highest total lockup volume of 6.42 billion US dollars.

FAQs

1. What is an Ethereum Layer2 network?
An Ethereum Layer2 network is a secondary blockchain network that runs independently of the main blockchain but is anchored to it to scale the primary blockchain network’s transaction processing capacity, thereby allowing faster and cheaper transactions.
2. What is the current total lockup volume of the Ethereum Layer2 network?
The current total lockup volume of the Ethereum Layer2 network is 9.57 billion US dollars, with a decline of 8.33% in the past 7 days.
3. Which Ethereum Layer2 network has the highest total lockup volume?
ArbitrumOne has the highest total lockup volume at 6.42 billion US dollars, accounting for 67.04% of the total lockup volume of the Ethereum Layer2 network.

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