Ethereum Foundation contributor Josh Stark noted a major achievement for the Ethereum-based second-layer networking ecosystem. In 2021, 20% of his followers were sure that this “flippening” would never happen.
Ethereum Foundation contributor Josh Stark noted a major achievement for the Ethereum-based second-layer networking ecosystem. In 2021, 20% of his followers were sure that this “flippening” would never happen.
Ethereum (ETH) L2s achieved a historic milestone
In the first days of 2024, the aggregate sum of value locked in Ethereum-based L2 protocols exceeded that of all non-Ethereum blockchains. While Ethereum L2s are responsible for $20.7 billion in equivalent, the rest of the blockchains accumulated $19.6 billion, as Stark noted today, January 4, 2024.
Meanwhile, he emphasized that the metrics cannot be treated as exactly similar: for second-layer networks, the indicator refers to the sum of assets in L2, including native tokens. For L1s, the metrics reflect the sum of assets locked in dApps on this or that blockchain.
The analyst used data from L2Beat to track second-layer blockchains and DefiLlama to analyze what is happening in non-Ethereum L1s.
Interestingly, in September 2021, he asked his audience about the date of this “L2 over L1” status change. Although the majority of his followers were sure that this event could occur in 2022, 20% responded that it would never happen.
The L2 ecosystem was 20 times smaller than the L1 ecosystem at the time of the first vote. During crypto winter, this gap became even more dramatic; its peak was reached amid the collapse of Terra/Luna in the first quarter of 2022.
Arbitrum (ARB) Dominance Approaches 50% Again
As evidenced by L2Beat, the Ethereum L2 ecosystem recorded an all-time high in TVL on January 2, 2024. The metric jumped above $20.78 billion in equivalent, adding over 330% in just one year.
The L2 scene remains very “concentrated”: only five networks (Arbitrum (ARB), OP Mainnet (Optimism, OP), Base, Metis Andromeda and Manta Pacific) are responsible for more than 90% of its TVL.
Arbitrum (ARB), the largest Ethereum-based L1, is rebuilding its dominance after a small drop. At the time of this edition, it is one step away from the 50% barrier.
For the closest competitor, OP Mainnet, this indicator is equal to 28.65%, L2Beat data says.
