TVL on Ethereum layer two surged to all-time high

Layer 2 TVL has more than doubled over the past couple of months. hitting a new all-time high of $5.64 billion.

TVL on Ethereum layer two surged to all-time high

The total value locked (TVL) on Ethereum layer two (L2) networks has surged to a new peak as gas fees continue to steadily rise driving additional adoption. 

Tier 2 analytics program L2beat currently describes that the total amount of value locked across different L2 protocols and networks has reached an all-time high of $5.64 billion. 

L2 scaling solutions provide a lot higher transaction throughput and lower transaction fees, and they have surged in terms of adoption in November which has seemed the highest average gas fees in Ethereum network history.

Arbitrum has the lion's share of the L2 market value with $2.67 billion locked up, or nearly 45% of the total.

The dydx decentralized derivatives exchange is in second place with $975 million in TVL, and the loopring L2 DEX is in third place with $580 million, however, its own LRC token makes up the most of its value locked.

Tier 2 TVL has more than doubled since the start of Oct, surging 110% from $2.68 billion to current levels.

Average Ethereum transaction fees are currently around $40 according to Bitinfocharts. They spiked to their second-highest ever level of around $40 according to Bitinfocharts, They spiked to their second-highest ever level of around $65 on Nov.9 and have increased by 700% over the past four months.

Gas prices vary depending on the operation, a straightforward ERC-20 token transfer can cost around $45 right now a more complex smart contract interaction or Uniswap swap can cost a painful $140 according to Etherscan.

Registering a name on the Ethereum Name Service can cost hundreds of dollars in gas despite the actual domain name costing just several bucks every year.

Since Oct, multichain compatible Defi platforms have seen record inflows as investors and developers attempted to avoid the Ethereum network due to soaring gas charges.

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