Data from IntoTheBlock reveals a significant rise in L2 transactions since May 2023. This growth coincides with the Dencun upgrade which aimed to improve the scalability of the Ethereum blockchain. As of April 2024, the total number of transactions settled on top L2s has jumped by 196% to a staggering 5.67 million.
Among the L2 solutions, Base has emerged as the frontrunner processing a whopping 57% of all transactions. Arbitrum and Optimism follow closely behind, handling 31% and 11% of transactions respectively.
The recent Dencun upgrade has had a significant impact on the Ethereum network particularly in terms of transaction fees. This has led to a surge in user activity particularly through L2 solutions. The L2 ecosystem has been averaging over 124 transactions per second since the upgrade.
Arbitrum, the leading L2 solution in terms of Total Value Locked (TVL) has seen a healthy increase in daily transactions nearly doubling to 2 million. Meanwhile, Optimism has settled at a range between 600,000 and 800,000 daily transactions which is still a significant improvement.
Base, powered by the Degen Chain’s popularity, has witnessed a meteoric rise surpassing the 3 million daily transactions mark and even eclipsing Arbitrum in terms of volume. While boasting the third-highest TVL at $4.38 billion it still has room to grow compared to established players.
The combined value locked (TVL) in L2 solutions has surpassed a staggering $42 billion indicating a significant rise in user adoption. This metric reflects the total amount of cryptocurrency deposited within these protocols. Interestingly, Base has exhibited a growth of around 21% and recently crossed the $4 billion TVL mark for the first time.
Although L2 tokens saw a modest rise post-upgrade, they have yet to recover from their weekly losses. The long-term effectiveness of L2 solutions depends on future Ethereum upgrades. While L2s offer a temporary solution, Ethereum’s core scalability issues have yet to be entirely addressed.
