Ethereum Layer 2 Surpasses $10 Billion as Majority of Investors Remain Profitable
Recent data indicates a substantial surge in activity within Ethereum’s Layer 2 (L2) ecosystem. Leon Waidmann, the head of research at the Onchain Foundation, reported that more than $10 billion is currently locked in Ethereum L2 solutions, surpassing Solana’s $4 billion, highlighting Ethereum’s growing dominance. The rapid adoption of Layer 2 is projected to influence Ethereum’s price as the L2 ecosystem becomes increasingly integral to enhancing Ethereum’s functionality.
Waidmann also disclosed that the user base of Ethereum’s Layer 2 has reached a record high, with over 10 million active addresses, representing a 35.23% increase in the past week. Noteworthy is the presence of 550,989 active addresses across multiple chains, underscoring the expanding interconnection between Layer 2 networks. Ethereum’s L2 dominance has also risen by 26.08%, demonstrating how Layer 2 solutions are propelling Ethereum’s utility and driving broader adoption of Web3 technologies.
In conjunction with the swift adoption of Layer 2 solutions, the latest data from IntoTheBlock indicates that 61% of Ether holders are currently profitable. This resilience is particularly evident when compared to previous market cycles, where the percentage of profitable holders dropped significantly during bear markets. Ethereum’s current cycle showcases a stronger ability for holders to remain profitable even during downturns, in contrast to previous cycles.
Additionally, a notable development occurred as an Ethereum whale, dormant for over eight years, recently made a significant move. The whale executed its first transaction since February 2016, transferring 16,636 ETH on September 15 at 7:25 PM UTC. On-chain data reveals that the whale divided the assets among three addresses, primarily converting them into wrapped Ethereum, holding 16,199 wETH.
It’s important to note that the information provided in this content is for informational purposes only and should not be construed as financial advice. The opinions expressed are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions to mitigate financial risks.
