Layer 2 Networks Account For Nearly Two-Thirds of Ethereum Transactions: Report
Ethereum’s layer 2 networks have gained significant traction in the past few years as developers seek faster and cheaper solutions to interact with the blockchain.
According to a new report released by blockchain intelligence firm, Messari, layer 2 solutions recorded 61% of the entire Ethereum (ETH) transactions in Q3 2023.
The State of Ethereum report explored how the blockchain and cryptocurrency fared in the last three months, notably around prices, adoption of layer 2 networks, asset dominance, network upgrades, etc.
Layer 2 solutions are separate networks that help developers build on Ethereum’s mainnet. The need for these solutions grew as a result of the congestion of Ethereum resulting in the need to scale, reduce fees, and expand use cases.
Kunal Goel, a research analyst at Messari opined that the increased adoption of layer 2 transactions in the third quarter of this year is largely a spin-off from the growing adoption of Base.
Since the launch of Base in August, it has lived up to its expectations with growing transactions and use cases and temporarily recording more activity than the mainnet at one point.
The network boasts $442 million in total value locked (TVL) within months which takes it into the top four layer 2 solutions.
According to its developers, Base differs from the rest because it was built solely for developers without a native token as native governance assets in most cases distort the work done on the network.
“We want folks to see Base as kind of an opportunity for growth and expansion. But we also think it's really important that we incubate, and curate a Base native community where folks who are really building base first, and creating for this new kind of world,” Jesse Pollak, Director of
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