On Monday, the total value locked (TVL) on Ethereum’s Layer 2 (L2) chains reached a record high of $47 billion. This surge in TVL can be attributed to the recent approval of spot ETH exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The approval of these ETFs has garnered significant attention from the global crypto community and has further fueled the bullish sentiment surrounding Ethereum.
According to data from L2 Beat, the TVL on Ethereum’s L2 chains has increased by 15.68% in the past seven days. In May 2023, the TVL was around $11 billion and gradually rose to $22.55 billion by December 31st of the same year. At the beginning of 2024, there was a significant rally that pushed the TVL to a new high of $45.52 billion in early April. However, a brief period of bearish sentiment followed, causing the TVL to drop to $37.51 billion before the recent recovery.
Among the L2 chains, Arbitrum One has been leading the surge with a TVL of $19.27 billion. OP Mainnet and Base follow closely behind with TVLs of $7.83 billion and $6.94 billion, respectively. Other notable contributors include Blast, Mantle, Linea, and StarkNet, with Blast having a TVL of $3.36 billion and the remaining L2 chains having TVLs exceeding $1 billion. Polygon zkEVM is also worth mentioning as the 15th largest contributor with a TVL of $167.36 million.
The Ethereum network has recently experienced significant developments. Vitalik Buterin, the co-founder of Ethereum, has announced plans to address the Miner Extractable Value (MEV) issue and further decentralize the network. Ethereum’s core developers have set Q1 2025 as the target for the Pectra upgrade. Additionally, the Ethereum community witnessed the launch of Taiko, an L2 scaling solution, last week.
The SEC’s approval of spot ETH ETFs on May 23rd has served as a cornerstone for the recent surge in the Ethereum network. Furthermore, the price of Ethereum has increased by 2.69% in the past 24 hours and is currently trading at $3910, according to data from CoinMarketCap.
In today’s crypto news, there is speculation about Bitcoin reaching $70,000 and whether the bulls will confirm this rally.
