Ethereum

Arbitrum

Base

Optimism

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As more layer-2 solutions emerge, Ethereum is losing its dominance as the main network for on-chain activities. 
Activity across layer-2 networks is booming as transactions on these products accounted for more than 60% of all Ethereum activity in Q3, 2023. According to <a href="https://twitter.com/MessariCrypto/status/1711380660269830321" target="_blank" rel="noreferrer noopener">data</a> from Messari, Coinbase’s Base network in a moment was doing “more transactions than Ethereum Mainnet.” 
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 <img decoding="async" loading="lazy" width="1024" height="576" src="https://crypto.news/app/uploads/2023/10/F8ALUiaaIAA0wfY-1024x576.jpg" alt="Layer-2 transactions accounted for over 60% of all Ethereum activity in Q3 - 5" class="wp-image-14202150">
</figure> 
 You might also like: <a href="https://crypto.news/tim-draper-unveils-crypto-studio-to-spur-defi-layer-2-innovations/"> </a> 
As per Messari’s calculations, other layer-2 networks saw a lot of growth over the past quarter as well, with Optimism seeing a 40% increase in transactions. However, this surge of activity also had side effects for the others: 
<blockquote class="wp-block-quote"> 
 “It does appear that Base and Optimism cannibalized some of the activity on Arbitrum, where transactions fell by 36%” 
 Messari 
</blockquote> 
Nonetheless, Arbitrum is still on top among other layer-2 networks with 600,000 average daily transactions, compared to 400,000 for Optimism and Base, the firm pointed out. 
<figure class="wp-block-image size-large">
 <img decoding="async" loading="lazy" width="1024" height="209" src="https://crypto.news/app/uploads/2023/10/jpsdijfsd-1024x209.png" alt="Layer-2 transactions accounted for over 60% of all Ethereum activity in Q3 - 6" class="wp-image-14202156">
 <figcaption class="wp-element-caption">
 Chart of all funds locked on Ethereum-based layer-2 networks | Source: l2beat.com
 </figcaption>
</figure> 
According to L2BEAT <a href="https://l2beat.com/scaling/summary" target="_blank" rel="noreferrer noopener">data</a>, Arbitrum is also the largest layer-2 network in terms of total value as more than $5.7 billion worth of crypto locked in it, representing a 54.4% market share among other rollups. Despite the surge of activity, the total value locked in decentralized finance (defi) protocols has been steadily declining since March 2023. As per <a href="https://defillama.com/" target="_blank" rel="noreferrer noopener">DefiLlama</a>, defi protocols currently have around $37.6 billion in liquidity, a level last seen in February 2021. 
 Read more: <a href="https://crypto.news/cftc-chair-wants-defi-to-be-regulated-says-70-of-crypto-assets-are-commodities/"> </a>

Layer-2 transactions accounted for over 60% of all Ethereum activity in Q3

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