Ethereum

Arbitrum

Polygon

Billion

<p class="p1" style="text-align: justify">Blockchain data analysis platform L2Beat has caught the attention of many Web3 users with new data. According to the data, Ethereum Layer-2 networks reached a new milestone on November 10th, with a total locked value (TVL) of $13 billion in smart contracts. Despite some challenges in user experience and security, industry analysts expect this significant interest in Layer-2 networks to continue.</p>
<h2 class="p1" style="text-align: justify" id="record-breaking-in-layer-2-ecosystems">Record-Breaking in Layer-2 Ecosystems</h2>
<p class="p1" style="text-align: justify">According to L2Beat data, there are 32 different networks classified as Ethereum Layer 2, including Arbitrum One, Optimism, Base, <a href="https://en.coin-turk.com/polygon-reveals-investment-plan-for-innovative-zk-proof-supported-scaling-solutions/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Polygon</a> zkEVM, Metis, and others. Before June 15th, the total TVL value of these networks was less than $10 billion, and the combined TVL had been declining since reaching its highest level of $11.8 billion in April.</p>
<p class="p1" style="text-align: justify">However, starting from June 15th, TVL growth in Layer-2 networks turned positive, and as of October 31st, these networks reached a new peak with approximately $12 billion worth of TVL. Investments in Layer-2 platforms have continued to increase since then, surpassing the $13 billion TVL level on November 10th and reaching around $13.5 billion.</p>
<p class="p1" style="text-align: justify">This increase in TVL is at much lower levels compared to the current general crypto investment during the 2021 bull <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">market</a>. When the crypto market cap reached an all-time high of $2.82 trillion on November 12, 2021, there was less than $6 billion locked in Layer-2 smart contracts. According to Coinmarketcap, although the total crypto market cap is now at a lower level of $1.4 trillion, the TVL value of Layer-2 networks is greater than ever.</p>
<p><img decoding="async" class="aligncenter wp-image-276780 size-full" src="https://coin-turk.com/wp-content/uploads/2023/11/ethereum-layer-2-veri.webp" alt="" width="1191" height="619"></p>
<h2 class="p1" style="text-align: justify" id="attention-grabbing-theory-from-a-prominent-figure">Attention-Grabbing Theory from a Prominent Figure</h2>
<p class="p1" style="text-align: justify">Elena Sinelnikova, CEO of Metis, shared a theory in an interview about why Layer-2 networks have grown despite the ongoing bear market. According to the prominent figure, the high gas fees of Ethereum during the bull market had an impact on users and created a desire for alternatives in the market when demand started to return:</p>
<blockquote>
 <p class="p1" style="text-align: justify">“During the bull market, scaling Ethereum was very difficult during peak times, making transactions slow and very expensive. Hundreds of dollars were being paid for a single transaction, making it an unsustainable structure.”</p>
</blockquote>
<p class="p1" style="text-align: justify">According to Sinelnikova, another reason for the success of Layer-2 networks in the bear market is the successful marketing methods of development teams, which have led to high user activity and consequently high returns:</p>
<blockquote>
 <p class="p1" style="text-align: justify">“They use capital to attract new users and bring new projects to <a href="https://en.coin-turk.com/decentralized-finance-defi-unleashing-the-future-of-transparent-financial-system/" data-wpel-link="internal" rel="noopener noreferrer nofollow">DeFi</a>. DeFi operators from all ecosystems always go where there are high returns, and this happens naturally.”</p>
</blockquote> Continue Reading: <a href="https://en.coin-turk.com/ethereum-layer-2-networks-reach-13-billion-tvl-milestone/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/ethereum-layer-2-networks-reach-13-billion-tvl-milestone/</a>

Ethereum Layer-2 Networks Reach $13 Billion TVL Milestone

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