Ethereum Layer2 Lockup Volume Rises to $9.1 Billion: A Look at the Top Two Expansion Plans

03/25/2023 20:03 • NFT Newsflash • 142 views

According to reports, L2BEAT data shows that up to now, the total lockup volume on Ethereum Layer2 is $9.1 billion, up 35.39% in the past 7 days. Among them, the largest lockup volume is the expansion plan Arbitrum One, which is approximately $6.118 billion, accounting for 67.23%, followed by Optimism, which has a lockup volume of $1.984 billion, accounting for 21.80%.

Total lockup on Ethereum Layer2 is $9.1 billion

The growth of decentralized finance (DeFi) has created a surge in demand for layer2 scaling solutions for Ethereum, which has led to the rise of various expansion plans. According to the latest data from L2BEAT, the total lockup volume on Ethereum Layer2 has now reached $9.1 billion, a significant increase of 35.39% in the past 7 days.
In this article, we dive into the details of the top two expansion plans with the largest lockup volume on Ethereum Layer2 – Arbitrum One and Optimism, with a particular focus on their unique features and benefits.

Arbitrum One: The Largest Lockup Volume

Arbitrum One is a layer2 scaling solution built on Ethereum, which aims to enhance scalability and lower gas fees on the network. The system is powered by optimistic rollups, which focus on reducing the number of interactions between user and operator, thus increasing efficiency.
Arbitrum One has been a popular choice for users due to its faster transaction speeds and reduced gas fees, making it a preferred platform for smart contract deployment and dApps. As of the L2BEAT report, Arbitrum One has a lockup volume of $6.118 billion, accounting for 67.23% of the total lockup volume on Ethereum Layer2.

Optimism: A Fast-Growing Expansion Plan

Optimism is another layer2 scaling solution that uses optimistic rollups to improve transaction speeds and reduce gas fees on Ethereum. The platform allows users to move their tokens from the Ethereum network to Optimism, where they can be traded and transferred more efficiently.
Optimism has been gaining popularity due to its user-friendly interface and advanced features, which have made it a suitable platform for experienced and novice traders alike. The platform has a lockup volume of $1.984 billion, accounting for 21.80% of the total lockup volume on Ethereum Layer2, making it the second-largest expansion plan on the network.

Conclusion

The exponential growth in demand for DeFi has led to the emergence of various layer2 scaling solutions on Ethereum. The total lockup volume on Ethereum Layer2 is on the rise, with Arbitrum One and Optimism leading the pack in terms of lockup volumes. These two platforms have emerged as popular choices for users, providing faster transaction speeds, lower gas fees, and a user-friendly interface.

FAQs

Q1: What is Ethereum?
Ethereum is a blockchain-based platform that allows developers to build decentralized applications (dApps) and smart contracts. It is the second-largest cryptocurrency by market capitalization, after Bitcoin.
Q2: What are layer2 scaling solutions?
Layer2 scaling solutions are secondary systems built on top of the Ethereum network that aim to increase transaction speed and reduce gas fees.
Q3: What is DeFi?
DeFi, short for Decentralized Finance, is a financial system built on decentralized blockchain technology that enables peer-to-peer trading without intermediaries.

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