The total value locked (TVL) in Ethereum Layer 2 networks has soared to a new all-time high of $47 billion. According to data from L2BEAT, an analytics and research platform for Ethereum Layer 2 solutions, the current TVL of all tokens bridged, external bridged, and natively minted on Ethereum Layer 2 networks has reached $47.45 billion, setting a new record.
Leading Layer 2 Networks
Breaking down the figures, Arbitrum One leads the pack with a TVL of $19.3 billion. It is followed by OP Mainnet, which holds $7.88 billion, and Base, with $6.94 billion. Other notable networks exceeding $1 billion in TVL include Blast, Mantle, Linea, and Starknet. L2BEAT reports that the total TVL across all Layer 2 solutions has increased by 17.39% over the past week.
Impact of Ethereum Spot ETFs
The bullish trend in TVL has been largely driven by the recent approval of Ethereum Spot ETFs by the Securities and Exchange Commission (SEC). On May 23, the SEC approved Ethereum Spot ETF applications from eight issuers, marking the second approval of spot ETFs for digital assets in the U.S. after Bitcoin Spot ETFs were approved in January. The issuers include BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. These companies are currently in the process of submitting their S-1 forms, with analysts expecting the ETFs to launch within a few weeks.
Upcoming Ethereum Update: Pectra
Additionally, Ethereum core developers have announced that Pectra, the next major update to the Ethereum network, is slated for launch in the first quarter of 2025. The community chose this timeframe to avoid debugging during Devcon and the holiday season, allowing developers ample time to thoroughly test the update and manage the transition smoothly.
For the consensus client (CL), the Pectra update will include PeerDAS to enhance the network's data availability. For the execution client (EL), Pectra will introduce EOF, replace EIP-3074 with EIP-7702, and apply a patch for EIP-2935.