The total locked cost on Ethereum (L2) networks has reached a new peak as gas charges continue to rise steadily.
L2beat’s Layer 2 analytics platform reports that the total amount of ETH blocked across various L2 protocols and networks has reached an all-time high of $ 5.64 billion.
L2 scaling solutions provide much higher transaction throughput and lower transaction fees. Their adoption skyrocketed in November, when it recorded the highest average gas commission in the history of the Ethereum network.
Hitting new ATHs in $ ETH locked in layer2
– Evan Van Ness 🐬 (@evan_van_ness) November 22, 2021
Arbitrum holds the lion’s share of the L2 market with $ 2.67 billion blocked, which is about 45% of the total.
The dYdX decentralized derivatives exchange is in second place with $ 975 million, Loopring L2 DEX came in third with $ 580 million, with its native LRC token accounting for most of the blocked value.
Since early October, the amount of blocked funds in Tier 2 solutions has more than doubled, or 110%, from $ 2.68 billion.
According to Bitinfocharts, Ethereum’s average transaction fees are currently around $ 40. On November 9, it climbed to its second highest level of around $ 65, and has risen 700% over the past four months.
Gas prices vary depending on the transaction: a simple transfer of an ERC-20 token can cost about $ 45, and a more complex interaction of a smart contract or a Uniswap exchange can cost a very tangible $ 140, this is Etherscan data.
Registering a name with the Ethereum Name Service can cost hundreds of dollars in gas, despite the fact that the actual domain name only costs a few dollars a year.
DeFi platforms that are compatible with multiple networks have seen a record inflow of funds since October as investors and developers avoided using the Ethereum network due to soaring gas charges.
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