From Fusion Media Limited:

Ethereum’s L2 networks have achieved a major milestone in surpassing all other blockchains by total value locked. As of Jan. 2, 2024, the total value locked in Ethereum L2 protocols has exceeded that of all non-Ethereum blockchains, reaching $20.7 billion. The ecosystem remains heavily concentrated, with just five networks responsible for over 90% of its TVL. Arbitrum, the largest Ethereum-based L1, is close to the 50% barrier, while OP Mainnet, the closest competitor, sits at 28.65%.

Back in September 2021, many followers were skeptical that the “L2-over-L1” flippening would ever happen, but it has now become a reality. The L2s ecosystem has grown significantly over the past year, with the total value locked jumping by over 330% to reach an all-time high. This achievement marks a major turning point for Ethereum’s second-layer networks, which were 20 times smaller than L1 networks as of the first voting on the matter. Despite the concentrated nature of L2s, the growth and dominance of networks like Arbitrum demonstrate the strength and potential of Ethereum’s L2 ecosystem.

The metrics used to compare L2 networks with non-Ethereum L1s are not exactly similar due to the nature of second-layer networks and dApps on different blockchains. Ethereum L2s have shown significant growth and have overtaken non-Ethereum blockchains in terms of total value locked, marking a historic achievement for the Ethereum-based ecosystem. The dominance of L2 networks like Arbitrum and OP Mainnet is a testament to the strength and growth potential of Ethereum’s second-layer solutions.

In the past, there was skepticism around the possibility of the “L2-over-L1” flippening, but the total value locked in Ethereum’s L2 protocols has now exceeded that of all non-Ethereum blockchains. This demonstrates the rapid growth and dominance of Ethereum’s second-layer networks, with Arbitrum, the largest Ethereum-based L1, on the brink of reaching the 50% barrier. The concentrated nature of L2s is evident, with just five networks responsible for over 90% of its TVL, showcasing the strength and potential of Ethereum’s L2 ecosystem.



Read more: Ethereum L2s Surpassed All Other Blockchains by TVL: Details By U.Today