Ethereum layer 2 ecosystem accelerates 400% growth

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Ethereum layer 2 ecosystem accelerates 400% growth

Newer L2s like Base and zkSync Era continue to gaintraction.

The activity across Layer 2 networks is booming, with combined L2 throughput outpacing the Ethereum mainnet by 400%.

L2beat reported that the weekly average scaling throughput of Ethereum's Layer 2 ecosystem surpassed 50 transactions per second for the first time on Aug 15, reaching an all-time high of 50.83 TPS two days later.

The milestone comes as the zkSync Era has overtaken the Ethereum mainnet, with daily activity still sitting at 122.6 TPS compared to 10.9 TPS for Ethereum. On August 19th, era processed a record-high 13.44 TPS.

A new L2s breed is disrupting the dominance of incumbents Arbitrum and Optimism.

The new L2 from the top U.S. exchange, Coinbase, is the second-most active layer 2 with 9.93 TPS after growing 50% over the past week. The surge in popularity of friend.tech, an app that enables users to trade tokens connected to Twitter profiles, has led to a surge in activity on Base.

Arbitrum has a 6.2 TPS, followed by Starknet with 4.8 TPS, and Optimism with 4.2 TPS.

Arbitrum and Optimism still command more than 80% of the nearly $10B in total value locked in layer 2s, with $5.6B and $2.6B, respectively. zkSync's fourth spot is $408 million, followed by dYdX's $339 million, and Base's $237 million.

The Arbitrum Foundation responded to a new competition by launching its first grants program last month. The foundation said the new initiative is not intended to replace the grants programs operated by Arbitrum DAO.

The first round of Foundation Grants will devote funds to 'decentralized applications and infrastructure' for both its flagship Arbitrum One and gaming-focused Arbitrum Nova networks. DeFi, gaming, NFT, social dApps, or User interface tooling and backend application infrastructure are among the categories.

The foundation will progressively distribute funding to each candidate, based on key performance indicators and other milestones arranged with each applicant.