🔍 The L2 Wars The adoption of layer-2 networks built on Ethereum has been impressive over the past...In this case, the proof is in the fees: ~4% of Ethereum’s gas is now consumed by L2 contracts, up from...Additionally, L2s have flipped the Ethereum base layer in terms of transactions per second.

As highlighted by Flashbots’ research on L2 MEV, over $3.9 Bn in atomic arbitrage volume and $400 Mn...The funds used by a prospective auction participant to place bids are deposited into this contract on L2...Atlas helps capture MEV on the app layer, but it is out of scope for this post as it is concerned with L2...

Discord News Alchemix hints at veALCX. FujiDAO teases a new concept in their discord. GnosisDAO discloses SAFE token allocations. JonesDAO […]...

While Ethereum’s blocks have been nearly full for over a year, we’ve seen multiple L1 & L2 networks...What makes rollups special amongst L2s is that they don’t try to get around this problem.

Chart of The Day: Gas Spend Surges in March on L2 Activity Layer-2 rollups post all their transactional...This allows L2s to inherit the security of the L1 it settles on....In March 2022, L2s settling to Ethereum hit a new monthly high in terms of gas spent, surpassing 35B....The surge in gas spent was propelled by activity from several L2s.

...protocol launched, originally on the PoS sidechains xDAI and Polygon, and later in the year on the L2...Usage did not start to spike until the L2’s became more used....same exit times as optimistic rollups, there was not a critical need for Hop; this changed with the L2...As we see below, this directly correlates with the L2 launches.

Arbitrum and Metis Lead L2 TVL Growth Total Value Locked on L2s has risen back to levels seen at the...beginning of the year (~$6bn) as per L2beat....Among the seven largest L2s by TVL, only Arbitrum (+19% YTD) and Metis (+94% YTD) have seen positive...

L2s offer a solution to this, but they’re just starting to get off the ground....L2s Need a Jolt Optimism enjoyed a month-long head start over Arbitrum and has consequently seen more...There’s little doubt that L2s are the ideal scaling solution for Ethereum, however, they do need to introduce...

L2 Gas Consumption L2s have continued to gain steam, with them now comprising ~1% of total daily gas...Relative to the beginning of the summer, Arbitrum and Optimism have seen their share of total L2 gas...An optimal L2 should offer high throughput off-chain and an efficient / small footprint on-chain.

L2s Low on Gas? Arbitrum has seen a steep slowdown ever since the initial mania on the network.

Whether this can eventually pick up on Ethereum-centric L2s remains to be seen....L2 TVL Declines as L1s Steal the Show L2’s are losing market share to L1’s in recent months, despite...Most expected L2s to immediately become a hot-spot for developers and users who were priced out of Ethereum...

...data supports the thesis that a fair number of Ethereum users have actually migrated to Loopring’s L2...

Trades on Loopring are gas-free, which helped the L2 gain traction and surpass $3B in cumulative volume...

L2s spend 80% of life below launch. Consumer Crypto is bimodal. +15pp from 90d to lifetime....under-accrual or MegaETH — 53.3% of 10B MEGA gated on 4 KPIs (ecosystem growth, performance, decentralization, L2...PLUME "RWA infrastructure" –94% BERA "Proof-of-Liquidity primitive" LINEA "Best-in-class ZK L2...

L2 Wars Blast: Jumping the Shark I think it’s no secret that L2s have been a bit disappointing with their...the meaning of an L2....Ecosystems Will be Siloed Ethereum L2s are led by Arbitrum and Optimism, with ~60% of all L2 DeFi TVL...Rollups can choose from rollup/validium/volition mode, l2/l2, decentralized/centralized sequencers, solo...

This report also dives into the recent growth of Base, an Ethereum Layer 2 (L2) incubated by Coinbase...In the ~1 year the chain has been live, it has positioned itself at the forefront of the L2 space....However, Base is not the only L2 where users are seeing reduced fees....L2s have brought down onchain costs and made building onchain easier, faster, and cheaper. ...

If the appchain thesis holds and every major app launches its own L2, they’ll need more than just pure...This is illustrated by the rise of competing EVM L2s all with different standards....L2s are unwilling to adopt a common standard or sacrifice revenue....bridging/routing through Minitswap, and coordinating incentives to L2s through VIP program.

Chart of The Day: Optimism Causes Spike in L2 Settlement With Optimism’s $OP token launch, the L2’s...This pushed the total ETH Gas spent on L2 settlement to the highest it has ever been....On June 1st, Optimism took up the largest share of gas spending, representing 68% of total L2 gas spending...

We’ll then discuss the need for L2s on Solana and how SVM-based L2s are being implemented not only within...This discussion will extend to the growing ecosystem of L2s within Solana and how this SVM adoption is...Eclipse’s addition to Ethereum frees the L2 execution from the same limits as EVM.

L2s Got Room to Grow: Optimism’s Growth Stats Optimism garnered quite a bit of attention recently due...Additional strengths of the OP token (and L2 tokens in general) are that unlike L1 tokens, they are suitable...they don’t have to inflate nearly as much as L1 tokens do, given that there are no consensus nodes on L2s...L2s inherit consensus from the base layer.