The Total Lockup Volume of Ethereum Layer2 Network: An Overview

According to reports, according to L2BEAT data, the current total lockup volume of the Ethereum Layer2 network is 9.57 billion US dollars, with a decline in the past 7 days to 8.33%. Among them, the total lockup volume of the ArbitrumOne network is 6.42 billion US dollars, accounting for 67.04%; The total lock in volume of Optimism network is 1.94 billion US dollars, accounting for 20.28%, while the total lock in volume of Dydx network is 338 million US dollars, accounting for 3.53%.

The total lockdown volume of Ethereum Layer2 network dropped to $9.57 billion

As the world of blockchain technology is progressing, Ethereum has proven to be a trusted and reliable platform for various decentralized applications (dApps). However, due to high transaction fees, slow transaction speeds, and scalability issues, there have been network congestion problems. To mitigate these problems, the introduction of Layer2 networks has been a game-changer.
A recent report by L2BEAT data reveals that the current total lockup volume of the Ethereum Layer2 network is 9.57 billion US dollars, with a decline in the past 7 days to 8.33%. In this article, we will discuss the total lockup volumes of different Layer2 networks on Ethereum.

Overview of Ethereum Layer2 Network

Layer2 networks are scaling solutions that help improve the performance and throughput of the Ethereum network. These solutions operate off-chain and reduce the number of transactions that need to be validated by the main blockchain, thus increasing its overall efficiency.

Lockup Volume by Network

ArbitrumOne Network

ArbitrumOne is a popular Layer2 solution that uses optimistic rollups technology. It has a total lockup volume of 6.42 billion US dollars, which accounts for 67.04% of the total lockup volume of the Ethereum Layer2 network.

Optimism Network

Optimism is another Layer2 scaling solution that uses Optimistic Virtual Machine (OVM) technology. It has a total lockup volume of 1.94 billion US dollars, accounting for 20.28% of the total lockup volume of the Ethereum Layer2 network.

Dydx Network

Dydx is a decentralized exchange (DEX) running on the Ethereum Layer2 network. It uses StarkEx technology and has a total lockup volume of 338 million US dollars, accounting for 3.53% of the total lockup volume of the Ethereum Layer2 network.
These three Layer2 networks have contributed significantly to the improvement of Ethereum’s performance and scalability.

Conclusion

The Ethereum Layer2 network, along with its different scaling solutions, has increased the overall efficiency and speed of one of the leading blockchain platforms. The total lockup volumes of different Layer2 networks are a proof of the trust and reliability they have gained over time.

FAQs

Q1. What are the benefits of the Layer2 network on Ethereum?
The Layer2 network on Ethereum has numerous benefits, including increased speed, efficiency, and scalability, which reduces network congestion, transaction fees, and improves overall performance.
Q2. What is ArbitrumOne’s optimistic rollups technology?
Optimistic rollups technology is a Layer2 scaling solution that allows users to perform transactions off-chain and post them to the main blockchain in batches to reduce costs and increase efficiency.
Q3. What is Optimism Virtual Machine (OVM)?
Optimism Virtual Machine (OVM) is another Layer2 scaling solution that uses optimistic rollups and helps increase the efficiency of the Ethereum network.