Ethereum’s layer two blockchains have been one of the most talked about products in the crypto market, especially since the Dencun Upgrade.
Not only did those blockchains manage to increase the experience of Ethereum Ecosystem’s users but have also created their ecosystem which lets traders and investors have more and more opportunities to find profits in the market.
Currently, there are multiple layer two blockchains that have existed, but not all of them have been more popular than others.
Comparing Layer Two Blockchain’s TVL
Data from Coin98 Analytics has shown that in the first quarter of 2024, the number of TVL or total value locked on Ethereum’s Layer Two Blockchains has been increasing.
This is because one of the most innovations in the Ethereum Ecosystem has been done through the Decentralized Finance sector.
With mechanisms such as liquid staking and staking that lets users have double interests in their locked tokens, the amount of money that Ethereum’s Ecosystem processes have been increasing significantly.
Ethereum’s Layer Two Blockchains TVL Comparison / Source: Coin98 Analytics
Looking at the data, it can be seen that Arbitrum still leads the race as the number one layer two blockchain with the most locked funds in its ecosystem.
The dominance of Arbitrum is supported by the fact that in the last couple of months, Arbitrum has been the most used layer two blockchain for Ethereum transactions.
Arbitrum’s dominance was contributed by the fact that it had the most compatibility with other ecosystems as well as its low fees that are currently lower than other layer two blockchains.
Trailing behind it is Blast, which is another new layer two blockchain that has just been launched in 2024.
The current TVL surge on Blast happened because there is currently a potential airdrop campaign happening with points being introduced to the ecosystem.
The third spot has been changing a lot with Base and Optimism fighting for it due to the similar amount of transactions it processed.
However, Base has beaten Optimism in terms of TVL due to the meme coin surge that has been happening in its ecosystem.
Transaction Count Tells a Different Story
The Base meme coin surge also pushed its daily transaction count higher than other layer two blockchains on the Ethereum Ecosystem.
Top 3 Layer Two Blockchain’s Daily Transaction Count / Source: The Block
The base has managed to beat Arbitrum in terms of daily transaction count in April, which is the data that represents how many transactions are being processed on the blockchain in one day.
Arbitrum has dominated other layer two blockchains in 2024, but things might change in 2024 with all the meme coin hype.
However, if Arbitrum started to roll out a new ecosystem fund, then the chance of its dominance being overthrown would be minimized.
The number third spot is filled by Optimis which briefly dominated the layer two blockchain scene in the last weeks of 2023, before being beaten by Arbitrum and then later on by Base.
Overall, the race for dominance in the Ethereum layer two blockchain space is still ongoing. It will be interesting to see how the development goes as new projects are being developed on all of those blockchain ecosystems, which will increase the blockchain transaction count as well as their TVL.
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