Ethereum Layer2 Reaches Historical High with TVL Exceeding $10 Billion
According to reports, according to L2BEAT data, the total lock in volume (TVL) of Ethereum Layer2 has exceeded $10 billion for the first time, currently around $10.29 billion, sett
According to reports, according to L2BEAT data, the total lock in volume (TVL) of Ethereum Layer2 has exceeded $10 billion for the first time, currently around $10.29 billion, setting a new historical high. Among them, the total lockdown volume of Arbitrum is about 6.83 billion US dollars, and the total lockdown volume of Optimism is about 2.13 billion US dollars.
The total lockdown volume of Ethereum Layer2 has exceeded $10 billion, reaching a historic high
Introduction
The world of decentralized finance (DeFi) has been skiing uphill over the past year. This growth is driven by the increased use of Ethereum layer 2 solutions such as Arbitrum and Optimism. These two platforms alone have contributed to a total lock in volume that has exceeded $10 billion for the first time in history. In this article, we will explore the reasons behind this growth and what it means for the future of DeFi.
What is Ethereum Layer2?
Ethereum Layer 2 is a scaling solution for the Ethereum blockchain that aims to increase its throughput and reduce transaction fees. The creation of Ethereum Layer 2 has enabled developers to build decentralized applications (dApps) that are more user-friendly and cost-effective. This technology uses a variety of scaling methods, including state channels, plasma chains, and rollups.
What is Total Lock in Volume (TVL)?
Total Lock in Volume (TVL) is a DeFi metric that tracks the total amount of cryptocurrency that is locked into a smart contract on a particular DeFi protocol. This metric shows the amount of liquidity in a protocol, and it’s considered an essential factor to evaluate the potential risks and returns of a protocol.
Arbitrum and Optimism Driving the Growth in Ethereum Layer 2
According to L2BEAT data, Arbitrum and Optimism contribute to the significant growth in Ethereum Layer 2. Arbitrum leads the way with a lock-in volume of $6.83 billion, while Optimism has a lock-in volume of $2.13 billion. These numbers show that the market has high confidence in both platforms and that Ethereum Layer 2’s growth is set to continue.
The Benefits of Ethereum Layer2
The benefits of Ethereum Layer 2 include faster and cheaper transactions. This is possible because the scaling solutions significantly increase the network’s throughput, reducing congestion. Additionally, Ethereum Layer 2 solutions bring more users into the DeFi ecosystem, providing more liquidity and opening up new opportunities for investments. Finally, Ethereum Layer 2 enhances the security of the network by preventing scalability issues caused by congestions.
Future of Ethereum Layer2
The Ethereum Layer 2 growth is set to continue. The use of these scaling solutions is becoming increasingly popular, and more users are joining daily. The substantial investment in Ethereum Layer 2 will probably attract more investors, which will increase liquidity and lead to additional applications.
Conclusion
The total Lock in Volume (TVL) of Ethereum Layer 2 has exceeded $10 billion for the first time, with Arbitrum and Optimism being some of the most popular platforms driving this growth. Ethereum Layer 2 provides faster and cheaper transactions, more liquidity, and enhanced security. As the DeFi ecosystem continues to expand, the future of Ethereum Layer 2 looks bright.
FAQs
**Q1. What is DeFi?**
*A1.* DeFi stands for Decentralized Finance, a set of financial tools and systems built on the Ethereum blockchain that operate entirely outside the traditional financial industry.
**Q2. What are smart contracts?**
*A2.* Smart contracts are computer programs that self-execute when certain conditions are met. In the context of DeFi, they’re used to facilitate transactions without a central authority, such as a bank.
**Q3. Is Ethereum Layer 2 safe?**
*A3.* Ethereum Layer 2 utilizes a partitioned security model, meaning any security breaches will not affect the entire network. Additionally, Ethereum Layer 2 leverages redundancy and fail-safes built into layer 1 to improve the security of the platform.
**
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/20770/
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.
Recommended articles
-
iZUMi Finance Token IZI: The Complete Guide to KuCoin’s One-Stop Liquidity DeFi Protocol
On April 25th, KuCoin announced the upcoming launch of the one-stop liquidity as a service DeFi protocol iZUMi Finance token IZI. The trading hours will be 18:00 on April 26th, and
-
Mattel Creations to Launch P2P Marketplace for Digital Collectibles with NFT Support
According to reports, Mattel Creations, a digital collectible platform owned by American toy manufacturer Mattel, will launch a P2P (peer-to-peer) market feature on April 27th, sup
-
Aventus Delays Token Split Amid Uncertainty in the Cryptocurrency Market
On February 22, Aventus announced that it had shelved its earlier decision to split its native token AVT. The company said in a statement: \”This does not mean …
-
Venezuelan Regulators Conducting Anti-Corruption Investigation Against Joselit Ramirez
According to reports, there have been reports that Venezuelan regulators are conducting an anti-corruption investigation against Joseit Ramirez, the former head of the Supervisory
-
Is Bitcoin’s Rise Failing to Boost Trading Volume on Coinbase?
According to reports, Mizuho stated that investors\’ expectations that the rise of the Bitcoin to $30000 will boost the trading volume of Coinbase (COIN. US) may face a difficult aw
-
Raising Awareness for the Energy Industry with Iris Energy, Robin Hood, Zion, and CosmosHub
21:00-7:00 Key words: Iris Energy, Robin Hood, Zion, CosmosHub
Overview of important developments overnight on February 16
Interpretation of the n…
-
ChatGPT Stops Paying for Plus Due to High Demand: What It Means for the Future
On April 5th, according to media reports, ChatGPT has stopped paying for Plus, and OpenAI has given the reason that the demand is too high. Previously, ChatGPT had sparked heated d
-
Coinbase restores transactions within three hours of temporary shutdown
On March 5, according to the official news, three hours after the transaction of Coinbase. com (Advanced Trade) was disabled, the relevant transactions have be…
-
Animoca Brands Japan Invests in SmartRetail for an Interactive Platform
On March 16th, Animoca Brands Japan announced a commitment to strategic investment in SmartRetail, a customer analytics solution that combines face recognition technology. Deployed in convenience stores, gas stations, vending machines, and other scenarios, it can benefit from consumer traffic through valuable external advertising activities, thereby providing consumers with instant in-store incentives. Through its investment in SmartRetail, Animoca Brands Japan aims to establish an outdoor interactive platform in Japan that provides consumers with the option of providing Web3 incentives. Animoca Brands Japan will make a strategic investment in SmartRetail Analysis based on this information:Animoca Brands Japan has announced its strategic investment in SmartRetail, a customer analytics solution that comprises face recognition technology. The platform is used in convenience stores, gas stations, vending machines, and other scenarios, in which it can benefit from consumer traffic through valuable external advertising activities while providing consumers with instant in-store incentives. The investment aims to establish an outdoor interactive platform in Japan that offers consumers…
-
Ancilia Reports Root Cause of ParaSpace Attack
According to reports from the Web3 network security company Ancilia, the root cause of the attack on the NFT lending protocol ParaSpace occurred in the scaledBalanceOf() function of the contract 0xddde38696fbe5d11497d72d8801f651642d62353, which is used to calculate the user’s collateral through the supply() function. However, manipulating the number of APE tokens in the function getPooledApeByShares() allows scaledBalanceOf() to return a large value. Users can own a large amount of collateral and use it to borrow more assets. Ancilia: The root cause of the ParaSpace attack occurred in the scaledBalanceOf() function of the 0xddde3 contract Analysis based on this information:Web3 network security firm Ancilia has reported that the root cause of the attack on the NFT lending protocol ParaSpace occurred in the scaledBalanceOf() function of the contract 0xddde38696fbe5d11497d72d8801f651642d62353 which is used to calculate users’ collateral through the supply() function. The attacker manipulated the number of APE tokens in the function getPooledApeByShares() allowing scaledBalanceOf() to return a large value. As a result, users…
-
What is gusc coin (Is gus coin legal?)
What is gusc coin? Gusc coin is a decentralized blockchain network created by a
-
BTC Market Falls Below $20,000: Understanding the Significance of Market Fluctuations
According to the report, the market shows that BTC has fallen below $20000, and is now trading at $19992.0. The intra-day decline has reached 0.03%. The market…
-
Signature Bank’s Declining Deposits
According to reports, according to sources, the Crypto Friendly Bank, Signature Bank, had lost about 20% of its deposits, or about $17.8 billion, before being taken over. (Bloomberg) Sources: Before the takeover of Signature Bank, it had lost about $17.8 billion of deposits, accounting for about 20% Analysis based on this information:Signature Bank, known as a crypto-friendly bank, has recently reported losing about 20% of its deposits before being taken over. The bank lost approximately $17.8 billion, according to sources. Although there is limited information on the cause of the decline, it raises concerns about the bank’s stability and future sustainability. Signature Bank has gained a reputation for its willingness to work with cryptocurrency-related companies, offering an array of services to crypto businesses. This move, however, hasn’t always been easy, with the bank facing criticism and regulatory scrutiny. Despite this, Signature Bank continued its support for the crypto industry, positioning itself as the “go-to” bank for cryptocurrency operators. The news…
-
Starnet Foundation Announces Appointment of Five Committees
On March 21, the Starknet Foundation announced the appointment of five committees, among which the ProvisionsCommittee is responsible for planning, supervising, and implementing th
-
Sun Yuchen Receives Large Sum in USDC Transfer
It is reported that according to Whale Alert data monitoring, 4499 million USDCs (about US $98.98 million) were transferred from unknown wallets to Sun Yuchen\’…
-
Silvergate’s Share Price Takes a Dip
It is reported that according to the latest data of the US stock market, Silvergate\’s share price fell to US $2.84 at the close of Thursday, a drop of 42.16%. …