Total Lockup on Ethereum Layer 2 Decreases by 8.10%: Exploring the Expansion of Arbitrum One and Optimism

According to reports, L2BEAT data shows that as of now, the total lockup on Ethereum Layer2 is $9.572 billion, a decrease of 8.10% in the past 7 days. Among them, the highest lock in volume is the expansion plan Arbitrum One, which is about 6.388 billion US dollars, accounting for 66.74%, followed by Optimism, which has a lock in volume of 1.956 billion US dollars, accounting for 20.44%.

The total lockdown on Ethereum Layer2 is $9.572 billion

With the ever-growing popularity of decentralized finance (DeFi) and non-fungible tokens (NFTs), the Ethereum network has been feeling the strain of high gas fees and slow transaction times. To solve this problem, Ethereum has recently introduced Layer 2 scaling solutions, which bear witness to the tremendous growth of Ethereum’s Layer 2 lockup in recent months.
According to reports, L2BEAT data shows that as of now, the total lockup on Ethereum Layer 2 is $9.572 billion, a decrease of 8.10% in the past 7 days. This decline may be due to market corrections, but the amount remains significantly higher than in recent months. Among them, the highest lock-in volume is the expansion plan Arbitrum One, which is about 6.388 billion US dollars, accounting for 66.74%, followed by Optimism, which has a lock-in volume of 1.956 billion US dollars, accounting for 20.44%. Let’s explore these two solutions in detail.

Arbitrum One: The Expansion Plan Leading the Way

Arbitrum One is a Layer 2 solution that aims to offer scalable, low-cost, and fast solutions for Ethereum. The network features off-chain computation and scaling and operates as an Optimistic Rollup. It utilizes smart contracts that enable ordinary users to write and execute arbitrarily complex programs on it. As a result, it can take advantage of Ethereum’s existing ecosystem in a simple and seamless manner.
On the Arbitrum One network, users can experience fast and cheap transactions, with fees that are a fraction of those on Ethereum Layer 1. Additionally, Arbitrum One has already integrated with numerous DeFi protocols, including Uniswap, SushiSwap, and Aave, among others, enabling users to enjoy enhanced DeFi trading capabilities. With the current lockup volume of $6.388 billion, Arbitrum One is leading the charge towards the expansion of DeFi.

Optimism: The Layer 2 Scaling Solution for Ethereum

Optimism is another Layer 2 scaling solution designed to address the scalability issues faced by Ethereum. Optimism’s aim is to enhance the throughput of Ethereum, allowing it to compete with centralized services on throughput, speed, and cost. Optimism uses a technology called Optimistic Rollup, which brings many transactions off-chain, enhancing the speed of the Ethereum network.
Optimism is one of the most high-profile Layer 2 scaling solutions on Ethereum, with an impressive list of top-tier investors, including Andreessen Horowitz and Paradigm. The platform has achieved rapid adoption, with protocols like Uniswap and Synthetix already integrating with it. As a result, Optimism has lockup volume of $1.956 billion, accounting for 20.44% of the total lockup volume.

The Future of Ethereum’s Layer 2 Lockup

The growth of Ethereum’s Layer 2 lockup suggests that there is an increasing demand for a more efficient Ethereum network. As this demand increases, it is likely that more Layer 2 scaling solutions will emerge, seeking to address the scalability concerns facing the Ethereum network.
As for currently available solutions, Arbitrum One and Optimism offer users high-speed, low-cost, and seamless DeFi trading capabilities. Both platforms offer unique advantages to their users, and on-chain developers will likely create new, innovative projects on these Layer 2 solutions.
In conclusion, Ethereum’s Layer 2 lockup has showcased significant growth, with Arbitrum One and Optimism leading the way. With more Layer 2 scaling solutions in the works, the Ethereum network will likely enhance its scalability going forward, offering users faster and more affordable transactions.

FAQs

1. What is Layer 2 in the Ethereum network?
– Layer 2 scaling solutions are technologies that seek to address the scalability issues faced by the Ethereum network. This solution works on top of the existing Ethereum network, providing fast and affordable solutions for users.
2. What is Arbitrum One?
– Arbitrum One is a Layer 2 scaling solution that uses an Optimistic Rollup to offer low-cost, fast, and scalable solutions for Ethereum. It also enables ordinary users to execute complex programs securely and in a seamless manner.
3. What is Optimism?
– Optimism is another Layer 2 scaling solution designed to enhance the throughput of the Ethereum network, allowing it to compete with centralized services on throughput, speed, and cost. It uses Optimistic Rollup technology to bring many transactions off-chain, which speeds up the Ethereum network.