Ethereum layer two TVL reaches all-time high

Over the last several months, Layer 2 TVL has more than quadrupled, reaching a new all-time high of $5.64 billion.

As gas fees continue to grow, the total value locked (TVL) on Ethereum layer two (L2) networks has risen to a new high, spurring more adoption.

The total amount of value locked across multiple L2 protocols and networks has hit an all-time high of $5.64 billion, according to layer 2 analytics platform L2beat.

L2 scaling solutions provide substantially better transaction throughput and lower transaction costs, and they saw a spike in popularity in November when the Ethereum network saw the highest average gas fees in history.

Arbitron controls the lion’s share of the L2 market, accounting for $2.67 billion, or around 45 percent of the total.

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With $975 million in TVL, the dYdX decentralized derivatives exchange is in the second position, while the Loopring L2 DEX is in third place with $580 million, although its own LRC token makes up the majority of its value frozen.

Since the beginning of October, Layer 2 TVL has more than doubled, rising 110 percent from $2.68 billion to current levels.

According to Bitinfocharts, the average Ethereum transaction cost is presently approximately $40. On Nov. 9, they reached their second-highest ever level of approximately $65 and had risen by 700 percent in the last four months.

According to Etherscan, a basic ERC-20 token transfer costs roughly $45 at the present, while a more involved smart contract interaction or Uniswap swap costs a painful $140.

Despite the fact that a domain name costs only a few dollars per year, registering a name on the Ethereum Name Service can cost hundreds of dollars in gas.

Since October, investors and developers have been flocking to multichain compatible Defi platforms to escape the Ethereum network’s skyrocketing gas prices.