Soaring Growth of Ethereum Layer-2 Networks Set To Continue in 2023

Leading layer-2 networks on Ethereum have seen a surge in day to day active users and fees recently.

Over the past couple of months, the layer-2 networks have gone through an explosion of growth.

According to late data, the leading layer-2 networks have seen an increase in daily active users thathas translated into a growth in fees for the respective ecosystems.

According to analytics provider Token Terminal, Polygon stands out with 313,457 daily active users as of Jan. 17, a metric that spiked to north of 600,000 daily active users prior in January.

That’s a 30% increase in activity starting from the start of October, resulting in almost $55,000 worth of daily fees for Polygon.

Optimism has seen much faster growth, with a 190% increase in daily active users throughout recent months. This brought about daily network fees of $119,475, an increase of practically 140% starting from the start of the year.

Arbitrum One as of now has 41,694 daily active users, an increase of around 40% throughout the course of recent months. Daily fees on the network are simply more than $40,000, according to the data.

L2beat states that Arbitrum has a market share of over 50% in terms of total value locked. Aribtrum has seen a 9% increase in TVL throughout the last week.

Optimism, the second-biggest L2 network, has a TVL of $1.46 billion, giving it a market share of 30%. Its collateral locked has surged by 15% throughout recent days.The two together account for over 80% of all the collateral secured in layer-2 platforms.

There has been an increase of almost 10% in TVL for all L2s over the course of the last week, pushing the total TVL up to $4.89 billion. However, that figure is still down 34% since its top in April.

In any case, this decline is not exactly 50% of the retreat DeFi TVL has made since its untouched high. DeFi collateral has declined by 75% since December 2021, according to DeFiLlama, suggesting that there is greater interest and energy for layer-2 networks right now.