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Ethereum Layer2: An Updated Look at Lockup Volume

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According to reports, L2BEAT data shows that as of now, the total lockup on Ethereum Layer2 is $9.17 billion, up 0.23% in the past 7 days. Among them, the highest lock in volume is

Ethereum Layer2: An Updated Look at Lockup Volume

According to reports, L2BEAT data shows that as of now, the total lockup on Ethereum Layer2 is $9.17 billion, up 0.23% in the past 7 days. Among them, the highest lock in volume is the expansion plan, Arbitrum One, which is about 6.002 billion US dollars, accounting for 65.88%, followed by Optimism, which has a lock in volume of 1.954 billion US dollars, accounting for 21.45%.

The total lockdown on Ethereum Layer2 is $9.17 billion

The recent surge in the popularity of cryptocurrency has brought about the need for decentralized finance (DeFi) platforms that operate on blockchain technology. Ethereum has been at the forefront of providing this technology, with its Layer2 protocol being the most prominent. In the current market, the total lockup on Ethereum Layer2 stands at $9.17 billion, up 0.23% in the past 7 days, according to L2BEAT data. This article will explore the growth and popularity of Layer2 on Ethereum, taking a closer look at the two largest lockup volumes – Arbitrum One and Optimism.

What is Layer2?

Layer2 is a protocol that operates on top of the Ethereum network, and it enables faster and cheaper transactions through the use of sidechains. In simpler terms, it allows the processing of more transactions per second on Ethereum, while the main Ethereum network remains unaffected.
The surge in the popularity of DeFi decentralized applications (dApps) led to congestion on the Ethereum network, which slowed down transactions and increased transaction fees. The Layer2 protocol was developed to reduce the burden on the Ethereum network and allow for a smoother, more efficient transaction process.

Lockup Volume on Ethereum Layer2

As of now, the total lockup on Ethereum Layer2 is $9.17 billion, a testament to the growing popularity of the protocol. The current lockup volume is up 0.23% in the past 7 days, which highlights the consistent growth of the Layer2 technology.
The highest lockup volume is held by Arbitrum One, which accounts for 65.88% of the total lockup at approximately $6.002 billion. This platform has been a favorite among investors due to its fast and cheap transactions. Arbitrum One uses an optimistic roll-up technique that enables scaling while maintaining security and decentralization.
Optimism comes in second in terms of lockup volume, with a total lockup of $1.954 billion, accounting for 21.45% of the total. Optimism is an Ethereum-based protocol that uses the Optimistic Virtual Machine (OVM) to execute smart contracts. It also uses an optimistic roll-up technique, which enables the platform to process transactions faster and cheaper, like Arbitrum One.

Conclusion

The Layer2 protocol has revolutionized the way transactions are processed in the Ethereum network, with its fast and cheap transactions helping to ease congestion on the network. The growing lockup volume on Ethereum Layer2, with a total of $9.17 billion, suggests that the technology is becoming more popular among investors.
This article explored the growth and popularity of Layer2 on Ethereum, taking a closer look at the two largest lockup volumes – Arbitrum One and Optimism. These two platforms account for the majority of the total lockup, highlighting the fact that they are well-liked by investors due to their fast and cheap transactions.

FAQs

Q: What is Layer2?
A: Layer2 is a protocol that operates on top of the Ethereum network and enables faster and cheaper transactions.
Q: Why is Layer2 necessary?
A: The surge in the popularity of DeFi dApps led to congestion on the Ethereum network, which slowed down transactions and increased transaction fees. Layer2 helps to reduce the burden on the Ethereum network and allows for a smoother, more efficient transaction process.
Q: What are the two largest lockup volumes on Ethereum Layer2?
A: The two largest lockup volumes on Ethereum Layer2 are Arbitrum One and Optimism, with total lockups of $6.002 billion and $1.954 billion, respectively.

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