Ethereum Layer 2 TVL Nears $30 Billion Milestone as Prices Surge

AS ethereum LAYER SURGE 2024-02-28 75

According to CryptoPotato, Ethereum has experienced a significant increase in the past week, with its Layer 2 Total Value Locked (TVL) approaching the $30 billion milestone. The cryptocurrency, which is second only to Bitcoin in market capitalization, has displayed an upward trend, and assets and tokens associated with its ecosystem have also shown positive movements.

Ethereum's price has risen more than 10% over the last week, reaching $3,254, a new multi-month high. The Ethereum L2 TVL has also grown, hitting a new peak of $29.60 billion, a 12.08% increase over the last seven days. Arbitrum leads the surge with 45.18% of the total TVL, representing $13.37 billion, followed by OP Mainnet at 25.55%, or $7.56 billion. Other notable contributors include Manta Pacific at $1.89 billion, Starknet at $1.38 billion, and Base at $929 million.

The ongoing rise in the ETH price and the Ethereum L2 TVL could be attributed to the growing adoption and use of Layer 2 solutions. Mantle, an Ethereum Layer 2 blockchain, experienced one of the most significant increases, rising over 20% to reach an all-time high of $0.9494. Although the price has since consolidated to $0.92, the trading volume stands at $254 million, a 50% increase over the last day. Other L2 solutions such as Cybria, Polygon Ecosystem Token, and Polygon were the biggest gainers, up 14.7%, 4.6%, and 4.75% respectively, according to CoinGecko data.

In 2023, Bitcoin outperformed Ethereum in terms of price gains, surging over 150% while the latter only grew about 90%. Bitcoin's increase was driven by the anticipated spot Bitcoin ETF approvals, which could potentially lead to a massive influx of capital. However, as the attention surrounding the ETF approvals slows down, the focus appears to be shifting to Ethereum. The ETH community is eagerly awaiting the launch of spot Ethereum ETFs after several companies applied to offer them following the Bitcoin ETF approval. Analysts predict that the ETH ETFs will go live in May 2024, as the spot Bitcoin ETFs approval has set the groundwork. Meanwhile, the upcoming Dencun upgrade is drawing closer, bringing more positive sentiment. Currently, Ethereum is trading above $3,254 and the 100-hourly Simple Moving Average, with the primary resistance around the $3,275 mark and a significant hurdle near $3,320.