Ethereum Layer 2 TVL, record high | coindesk JAPAN | Coindesk Japan

Along with the rise in the price of Ethereum (ETH), the assets under custody (Total Value LockedTVL) of the Ethereum layer 2 network also rose, reaching a record high of 10 billion dollars (about 1.34 trillion yen) on April 14. .

TVL has since declined due to the decline in the cryptocurrency market, but according to data from Layer 2 analytics site L2Beat, it has maintained about $9.29 billion, more than double the amount at the beginning of the year.

TVL is the value of crypto assets deposited in a DeFi (decentralized finance) protocol. The rise in TVL reflects growing interest in Layer 2.

Around 5 million ETH (worth more than $10 billion) was deposited in mid-April when ETH crossed $2,100, according to L2Beat data. After that, as ETH broke below $1,900, TVL fell 10% over the past five days to its current level. At the beginning of the year, when ETH was below $1,200, TVL was just $4.1 billion.

L2Beat

Stephanie Dunbar, a research analyst at Messari, said the Layer 2 network’s TVL surge has prompted users to choose cheaper platforms to avoid Ethereum’s high transaction fees during peak demand periods. He told CoinDesk that it became like that.

Arbitrum Dominance

Arbitrum One has more than 66% of the Layer 2 market share, according to L2Beat. Optimism continues with a share of over 20%.

According to data sites Arbiscan and Etherscan, TVL’s fourth-largest Arbitrum surpassed the Ethereum blockchain in transactions per day this year. March averaged 1.2 million transactions per day, compared to 1.1 million for Ethereum.

Related article: Arbitrum transactions hit all-time high ahead of token airdrop

Riyad Carey, a research analyst at cryptocurrency data firm Kaiko, is also eyeing Layer 2 excitement, including Arbitrum’s token airdrop last month.

“It will be interesting to see how the Arbitrum user and transaction numbers are maintained after the airdrop,” he said.

He added that he believes TVL is a problematic metric because it depends on the price of crypto assets. So far, TVL and crypto asset prices have risen in tandem.

Pedro Lapenta, head of research at crypto asset management firm Hashdex, said that “in any analysis, one metric is not enough to tell the whole picture,” so apart from TVL, trading volume and other factors are important. He pointed out that it is important to analyze it together with other indicators of

Interest in ZK Rollup

New zero-knowledge proof (ZK) rollups zkSync Era and Polygon zkEVM had the fastest TVL growth in the past month, with Polygon zkEVM TVL reaching $5.18 million. It is up 14% in the last week. Meanwhile, ZkSync Era’s TVL was $240 million, up 0.2% in a week.

However, while ZK rollup is generally considered to be the “best scaling technology” because of its “high security and fast finality time”, considering its complex technical design, it is not fully compatible with EVM. Achieving compatibility remains a challenge, Dunbar added.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: L2Beat
｜Original: Ethereum Layer 2 Networks’ Total Value Locked Hovers at Near-Record High, Data Shows