The Ethereum-based Layer 2 (L2) ecosystems have recently experienced a significant decrease in the total value locked (TVL). According to data from CoinRank, the cumulative TVL of Ethereum L2s has dropped to $43.29 billion, indicating a 1.97% decline in the past few days. This decline highlights the ongoing volatility in the decentralized finance (DeFi) sector and the impact of broader market trends on Ethereum’s L2 scaling solutions.
Ethereum L2 TVL drops to $43.29B, down 1.97% in 7 days
The total value locked (TVL) in Ethereum Layer 2 networks has fallen to $43.29 billion, marking a 1.97% decline over the past 7 days. The top five L2s by TVL are:
– Arbitrum One: $16.29 billion (-2.63%)
– Base: $1.396 billion… pic.twitter.com/inShmUNxUI— CoinRank (@CoinRank_io) February 1, 2025
Ethereum ($ETH) Sees 1.97% Slump in L2 TVL
CoinRank recently revealed the TVL of the top five L2s in a post. The blockchain analytics platform reported a decrease in Ethereum’s L2 TVL in the recent days. With a 1.97% decline over the week, the current figure stands at $43.29 billion. This decline indicates a cautious sentiment among users and investors, reflecting the increasing volatility in the market.
Arbitrum One and OP Mainnet Record -2.63% and -5.69% Dips
Apart from Ethereum, Arbitrum One’s L2 TVL is nearly $16.29 billion, showing a decline of 2.63%. In addition, OP Mainnet has experienced a 5.69% decline, reaching a TVL level of $6.41 billion. On the other hand, the other three L2 networks have seen slight increases in TVL. Base’s TVL is now $1.396 billion, indicating a growth of 0.009%. ZKzyncEra’s present TVL is $1.16 billion, recording a substantial increase of 3.82%. Furthermore, Starknet’s TVL of almost $878 million reflects a rise of 3.28%.
L2 TVL Decline Parallels Ethereum’s Recent Price Decrease
Currently, ETH is trading at $3,267.73, with a 0.92% increase in the past 24 hours. However, its performance over the past week shows a 0.67% decline, and it has experienced a 4.85% decrease over the past month. The decline in L2 TVL also indicates investor reluctance. Nevertheless, this appears to be a short-term dip, and positive market developments and macroeconomic conditions can potentially change the momentum.