Ethereum Layer-2 TVL hits $21b, reaching all-time high

The total value of locked assets (TVL) in Ethereum (ETH) second-layer networks has exceeded $20 billion.

According to the L2beat platform, on Jan. 5 the TVL briefly exceeded $21 billion, eventually to falling to $20.41 billion at the time of writing, a new milestone for Ethereum-based layer-2s.

Moreover, Tier 2 TVL has risen 33% over the past month to its current level of $20.4 billion, not far from its peak. However, L2 TVL has grown by as much as 333% over the past year from approximately $4.8 billion at the beginning of January 2023.

DeFi markets grew by just 38% in terms of TVL over the same period, according to DeFiLlama.

Arbitrum One remained the market leader with around $10 billion in TVL, gaining a share of almost 50%. Optimism (OP Mainnet) ranks second with $5.8 billion TVL and a 28.7% market share.

The remaining Tier 2 platforms are relatively small regarding TVL, with Metis Andromeda and Base coming in third and fourth with TVLs worth around $750 million each.

Earlier this week, Arbitrum One’s TVL exceeded $10 billion, setting a new record. This figure exceeded $10.2 billion, dropping to $10.05 billion at the time of writing. Interest has been growing throughout the past year, and at the beginning of 2024 the global decentralized finance (defi) TVL rose to $55.34 billion.