Layer 2 adoption could trigger the next crypto tipping point.

Mysterious Redditor has made a data-driven prediction that the next major development phase in the blockchain space will be layer 2 solutions based primarily on Ethereum.

May 22 post “We are at a turning point in the industry moving from bridging between L1 blockchains to L2,” he explains. It’s a platform that’s believably neutral.”

“L2 adoption is happening now, even if it is slow and abrupt. Behind the scenes, L2 is improving reliability, lowering fees, and increasing accessibility. L2 is still being built and improved, and it’s fantastic.”

L2 scaling solutions leverage the security of L1 chains like Ethereum (ETH) and ease traffic by ‘rolling up’ multiple transactions into a single package to settle them at once.

Other L1 chains such as Solana (SOL), which boast relatively cheap and fast transactions, have been favored by users due to their high fees.

Average SOL transaction cost is around $0.0025 and ETH transaction is cost About $1.30 at the time of writing. In spite of the huge disparity, demand For the Ethereum block space, the total value peg (TVL) of $73.89 billion was overwhelmingly dominant. surpass Solana’s $4.24 billion, according to DeFi Llama blockchain tracker. Also, Solana has been struggling with stability issues lately.

At the time of writing, Arbitrum is the largest L2 on Ethereum with $2.65 billion in TVL. according to With L2beat. The TVL of the entire Ethereum L2 ecosystem is $4.77 billion. These numbers could explode if the right forces conspire to attract users and capital from other L1s.

Several major decentralized apps (Dapps) are already deployed at L2. Decentralized Exchange (DEX) SushiSwap (SUSHI) and Yield Aggregation Curve (CRV) are on Arbitrum. Also crypto-derived protocols Synthetix (SNX) and DEX Uniswap (UNI) are on optimism.

Relevant: MakerDAO deploys on the Layer 2 network StarkNet to enhance the functionality of the DAI stablecoin.

An incoming Optimism airdrop can signal the start of a quick influx of users to L2. This may be due to the same network effects that have drawn users to Ethereum and Ethereum Virtual Machine (EVM)-based Decentralized Finance (DeFi) protocols over the past two years.

Optimism is $474 million L2 in TVL. The EVM chain is compatible with Ethereum token standards such as Binance Chain (BNB), Polygon (MATIC), and Fantom (FTM).

Ultimately, an increase in L2 utility will naturally increase the use of Ethereum L1, further solidifying Ethereum as the world’s leading smart contract and decentralized application platform.

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