Ethereum Layer 2 Networks’ Total Value Locked Hovers at Near-Record High, Data Shows

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Ethereum Layer 2 Networks’ Total Value Locked Hovers at Near-Record High, Data Shows
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The total value locked of Ethereum layer 2 networks reached an all-time high of $10 billion on April 14, L2Beat data shows. TVL has since declined to around $9.29 billion, but is still double where it stood in January. _jocelynyang_ reports

Riyad Carey, research analyst at crypto data firm Kaiko, also sees potential airdrops and enthusiasm for new chains driving layer 2 initiatives, including Arbitrum’s ownlast month. He told CoinDesk that he was “curious to see how sticky Arbitrum's users and transactions will be now that its airdrop has happened.”

Despite the price fluctuation issue, Messari’s Dunbar sees TVL as a"legitimate mechanism" for gauging"network usage, interest, as well as value considering it is representative of the market's valuation of the network.” “While TVL can be an easy-to-understand metric , it can also be misleading,” Lapenta told CoinDesk, pointing to aand Polygon zkEVM have registered the fastest-growing TVL over the past month, with TVL rising on the latter to $5.18 million, a 14% increase over the past seven days. ZkSync Era accounted for $240 million in TVL, up 0.2% during the same period, according to L2Beat data.

According to Dunbar, ZK rollups are generally considered"top-notch for scaling" because of their “high-security guarantees and fast finality times,” but the challenge remains to achieve– meaning that the experience of developing on Arbitrum and Optimism is 100% identical to the experience of developing on Ethereum – given ZK rollups' complex technical design.

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