Ethereum Layer 2 Networks Achieve Record-Breaking 12.42M Daily Transactions

Ethereum’s Layer 2 ecosystem is experiencing a surge in activity, with recent data indicating a new high in daily transaction volume. Notably, these networks now house more stablecoins than both Solana and Binance Chain combined.

As per statistics compiled by Growthepie, daily transactions within Ethereum’s Layer 2 ecosystem peaked at 12.42 million on August 12. This milestone has been lauded by Leon Waidmann, head of research at the Onchain Foundation, who highlighted the significant progress in scalability that could potentially drive user engagement to unprecedented levels. Year-to-date, Growthepie has reported a remarkable 140% surge in daily transactions within the Layer 2 ecosystem, focusing solely on user- or smart contract-executed transactions while excluding system transactions.

The Base blockchain, incubated by Coinbase, has played a pivotal role in this growth by surpassing 4 million transactions in July alone. Although this number has slightly decreased to 3.6 million, Base has consistently outperformed Arbitrum, establishing itself as the leading Ethereum Layer 2 network in terms of transactions since early July. Presently, Arbitrum boasts a transaction figure exceeding 1.85 million, followed by Optimism with approximately $476k.

In addition to transaction activity, Growthepie’s findings reveal that Layer 2 networks within the Ethereum ecosystem now hold more stablecoins than Solana and Binance Chain, with 150% and 94% more stablecoins, respectively. Moreover, these networks exhibit a higher level of unique wallet activity, boasting over 4% more active addresses than Solana based on a 7-day rolling average.

The combination of a growing stablecoin supply and increased wallet activity signifies a rising confidence in Layer 2 solutions. These developments have sparked discussions around investor sentiment, questioning whether Solana is being overvalued or if Layer 2 solutions are being undervalued. Notably, Layer 2’s Fully Diluted Valuation (FDV) peaked around the time of EIP 4844, reaching nearly $95 billion, surpassing Solana’s FDV at that time. However, the FDV has since decreased to $31 billion, now lower than Solana’s valuation.

In conclusion, the recent surge in Ethereum’s Layer 2 ecosystem activity, particularly in daily transaction volume and stablecoin holdings, underscores the growing prominence and adoption of Layer 2 solutions within the crypto space.