The Increasing Adoption of Ethereum Layer2: A Look at Current Lockup Volumes

04/11/2023 03:01 • Blockchain Buzz • 84 views

According to reports, according to L2BEAT data, the current total lockup volume of Ethereum Layer2 has increased to $9.4 billion, an increase of 5.64% on the 7th. Among them, the top five locked positions are: ArbitrumOne ($6.16 billion, up 4.63% on the 7th); Optimism (2.01 billion US dollars, up 5.03% on the 7th); DYdX (347 million US dollars, a 7-day increase of 2.03%); ZkSyncEra ($201 million, a 7-day increase of 79.628%); ImmutableX ($131 million, up 2.43% on the 7th).

Ethereum L2’s total lockup increased to $9.4 billion zkSync Era broke through $200 million

Introduction

With the growing demand for faster and cheaper blockchain transactions, Ethereum Layer2 solutions have become increasingly popular. According to L2BEAT data, the current total lockup volume of Ethereum Layer2 has increased to $9.4 billion, an increase of 5.64% on the 7th. In this article, we will take a closer look at the top five locked positions and the reasons behind their growing adoption.

The Top Five Locked Positions on Ethereum Layer2

1. ArbitrumOne

ArbitrumOne is currently the top locked position on Ethereum Layer2, with a total lockup volume of $6.16 billion, up 4.63% on the 7th. This platform uses a unique Optimistic Rollup technology that enables faster and cheaper transactions without compromising security. Furthermore, ArbitrumOne offers smart contract interoperability with Ethereum, allowing developers to use existing Ethereum tools and infrastructure seamlessly.

2. Optimism

Optimism is another highly popular Ethereum Layer2 solution, with a total lockup volume of $2.01 billion, up 5.03% on the 7th. This platform also uses Optimistic Rollup technology to achieve faster and cheaper transactions, but it focuses more on decentralized finance (DeFi) applications. In fact, several DeFi protocols such as Uniswap and SushiSwap have already migrated to Optimism, benefiting from its lower gas fees and higher throughput.

3. DYdX

DYdX is a decentralized trading platform that allows users to trade perpetual contracts with up to 10x leverage. It has a total lockup volume of $347 million, a 7-day increase of 2.03%. Despite its relatively small total lockup volume, DYdX has proven to be one of the most active Layer2 solutions in terms of on-chain transactions. It recently processed over $2 billion in trading volume, surpassing several centralized exchanges.

4. ZkSyncEra

ZkSyncEra is a Layer2 scaling solution based on zero-knowledge (ZK) technology, offering a high degree of privacy and security. It has a total lockup volume of $201 million, a 7-day increase of 79.628%. ZkSyncEra focuses on supporting DeFi protocols such as Aave and Curve, as well as non-fungible token (NFT) marketplaces such as OpenSea and Rarible.

5. ImmutableX

ImmutableX is a Layer2 solution specifically designed for NFTs, offering near-instant transaction finality and zero gas fees for minting and trading NFTs. It has a total lockup volume of $131 million, up 2.43% on the 7th. ImmutableX recently partnered with several major NFT projects such as NBA Top Shot and Gods Unchained, demonstrating its potential to become a leading NFT infrastructure provider.

Conclusion

The increasing adoption of Ethereum Layer2 solutions is a clear indication of the growing demand for faster and cheaper blockchain transactions. The top five locked positions showcase the diversity and innovation of Layer2 technologies, each addressing different use cases and applications. As the Ethereum ecosystem continues to evolve, we can expect more Layer2 solutions to emerge and drive further growth in the crypto industry.

FAQs

Q1. What is Ethereum Layer2?
Ethereum Layer2 refers to various scaling solutions built on top of the Ethereum blockchain. These solutions aim to improve transaction speed and cost while maintaining the security and decentralization of the base layer.
Q2. How do Layer2 solutions work?
Layer2 solutions use various techniques such as sidechains, state channels, and rollups to process transactions off-chain or in a compressed format, reducing the load on the main Ethereum blockchain.
Q3. Are Layer2 solutions better than Ethereum?
Layer2 solutions do not replace Ethereum but complement it by improving its scalability and usability. Layer2 solutions also benefit from Ethereum’s security and network effects.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/15577.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.