Layer 2 activity is picking up pace and has surpassed Layer 1 Ethereum for some metrics including transactions per second.
The total transactions per second (TPS) is higher on the Layer 2 network than Ethereum. However, this does not equate to overall activity on those respective networks. According to Etherscan, there were 992,470 transactions on Ethereum on December 20.
The ‘flipping’ was reported by crypto research firm Delphi Digital on 21 December. It states that the leading two layer 2 networks were Arbitrum and Optimism.
According to the charts, the rally actually happened in late September, but since then Ethereum has remained above TPS. Ethereum currently processes around 12.5 TPS, and the L2 networks combined are closer to 15 TPS according to the chart. L2 activity and TPS peaked at 25 TPS in late October.
However, the difference is minor for now, and the only real conclusion is that the Layer 2 TPS has been trending upwards since August.
Comparing Layer 2 Networks
The TPS count on Ethereum is largely fixed at the moment. This will increase throughput only when sharding is introduced on the network. However, this is not expected to happen until late 2023 at the earliest.
Layer 2 industry analytics platform L2beat has introduced a new activity tracker to the ecosystem. It currently reports that Ethereum Base Layer TPS is 11.49 on average, while L2 TPS is 17.68.
Additionally, this confirms an increase in activity for all L2 networks analyzed since mid-October. L2 activity in terms of TPS actually started in August 2021.
The platform also reported that both Ethereum layers processed a total of over 152 million transactions. Furthermore, it states that 58% of them occurred at layer 2.
Activity on Arbitrum and Optimism alone is close to flipping Ethereum L1 daily TPS, it noted.
L2 Ecosystem Outlook
The total value locked in the Layer 2 ecosystem has been trending down since August. However, this could be a result of a decrease in crypto asset prices rather than capital outflows from various networks.
L2beat reports TVL of $4.25 billion across all measured L2 networks. Furthermore, it is a 43% decline from its all-time high of $7.48 billion in April.
Arbitrum One is the market leader with 54% dominance and TVL of $2.3 billion. By platform, Optimism comes in second with $1.14 billion TVL and 27% market share.
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