The Increasing Lockup on Ethereum Layer2

04/16/2023 23:55 • AI Insights • 99 views

According to reports, L2BEAT data shows that as of January 16th, the total lockup on Ethereum Layer2 was $10.47 billion. Among them, the largest lockdown volume is the expansion plan, Arbitrum, which is approximately 6.98 billion US dollars, accounting for 66.71%; Next is Optimism, with a lockdown of 2.15 billion US dollars, accounting for 20.56%; The third is dYdX, with a lock-in volume of 370 million US dollars, accounting for 3.54%. The fourth is zkSyncEra, with a lock-in volume of 240 million US dollars, accounting for 2.29%

The total lockdown volume of Ethereum L2 network is 10.47 billion US dollars

As of January 16th, 2022, the total lockup on Ethereum Layer2 has reached an impressive $10.47 billion, according to reports from L2BEAT data. This is a significant increase from last year and is expected to continue growing in the coming months. In this article, we will take a closer look at the current lockup on Ethereum Layer2, the expansion plans, and the platforms dominating this space.

Ethereum Layer2 Lockup

Ethereum Layer2 is a scaling solution that helps to solve the blockchain’s scalability issue. Unlike the traditional blockchain, where all transactions are recorded on the main chain, Layer2 allows for transactions to be processed on separate “side chains,” and the final results are then posted back to the main chain. This process reduces the transaction fees and increases the transaction speed.
As of January 16th, 2022, the total lockup on Ethereum Layer2 was $10.47 billion. The top four platforms contributing to the lockup are Arbitrum, Optimism, dYdX, and zkSyncEra.

Arbitrum

Arbitrum is the largest expansion plan on Ethereum Layer2, with a lockup volume of approximately 6.98 billion US dollars, accounting for 66.71% of the total lockup. The Arbitrum platform has established itself as a go-to Layer2 option for decentralized exchanges (DEXs) and other DeFi applications.

Optimism

Optimism, with a lockup volume of 2.15 billion US dollars, accounts for 20.56% of the total lockups. It is one of the fastest-growing Ethereum Layer2 scaling solutions, and its popularity is rapidly increasing among developers and users alike. Optimism enables users to conduct faster and cheaper transactions on the Ethereum network.

dYdX

dYdX is a decentralized trading platform that allows traders to trade perpetual contracts and margin trade. It has a lockup volume of 370 million US dollars, accounting for 3.54% of the total lockup. dYdX’s fast transaction speeds, and low fees make it an attractive option for traders who want to save money on fees.

zkSyncEra

The fourth-largest Ethereum Layer2 platform in terms of lockup volume is zkSyncEra. It has a lockup volume of 240 million US dollars, accounting for 2.29% of the total lockup. zkSyncEra is known for its excellent privacy features, which are highly sought after by users who prioritize privacy in their financial transactions.

Conclusion

Ethereum Layer2 is a crucial solution for solving the blockchain’s scalability problem. The current lockup on Ethereum Layer2 is promising, and it is an indication that the technology is gaining acceptance. The top platforms contributing to the lockup are Arbitrum, Optimism, dYdX, and zkSyncEra, with Arbitrum being the highest contributor.

FAQs

Q1: What is Ethereum Layer2?

A1: Ethereum Layer2 is a scaling solution that helps to solve the blockchain’s scalability issue by processing transactions on separate “side chains,” and the final results are then posted back to the main chain. This process reduces the transaction fees and increases the transaction speed.

Q2: Why is the lockup on Ethereum Layer2 important?

A2: The lockup on Ethereum Layer2 is essential because it shows the growing acceptance of the technology. It is an indication that the industry is ready to adopt Ethereum Layer2 as a solution for scalability issues.

Q3: Which platform is the largest contributor to the Ethereum Layer2 lockup?

A3: Arbitrum is the largest contributor to the Ethereum Layer2 lockup, with a lockup volume of approximately 6.98 billion US dollars, accounting for 66.71% of the total lockup.

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