As gas prices continue to rise, the total value locked (TVL), on Ethereum layer two networks (L2) has reached a new high.
L2beat, a layer 2 analytics platform reports that the total amount ETH secured across different L2 protocols has reached an all time high of $5.64 trillion.
L2 scaling solutions offer much higher transaction throughput, lower transaction fees and have seen a surge in adoption in November. This month has also seen the highest average gas fee in Ethereum network history.
Hitting new ATHs in $ETH locked in layer2 pic.twitter.com/0971sAdS16
— Evan Van Ness (@evan_van_ness) November 22, 2021
Arbitrum holds the largest share of L2 market, with $2.67 Billion locked up. This is approximately 45% of total.
With $975 million in TVL, the dYdX decentralized derivatives market is second, while the Loopring L2 DEX comes in third with $580million. However, its own LRC token locks most of its value.
Since October’s beginning, Layer 2 TVL has doubled in size. It has risen 110% from $2.68 Billion to its current level.
Related: Binance opens layer two ETH deposits with Arbitrum One integration
According to Bitinfocharts, the average Ethereum transaction fee is currently $40. They have increased 700% in the last four months and have risen to $65, their second-highest ever level.
Prices for gas vary depending on how the operation is performed. A simple ERC-20 token exchange can cost $45 right now, while a more complicated smart contract interaction or Uniswap Swap can run you $140 according to Etherscan.
Although registering a name on Ethereum Name Service can be expensive, the actual domain name costs only a few dollars per year.
Multichain compatible DeFi platforms with multichain compatibility have seen record inflows since October as developers and investors tried to avoid the Ethereum network because of skyrocketing gas fees.