Layer-2 protocols double their value to over $10 billion eclipsing DeFi market growth


18 Sep 2023 9:41 PM

The crypto market has seen a shift in the flow of capital towards the blockchains running atop other blockchains known as Layer-2 solutions. These cha...

  • Layer-2 solutions in the crypto market have experienced significant growth, with their value increasing from $5 billion to $10 billion in nine months.
  • The total value locked (TVL) in the DeFi market has remained relatively unchanged at $65 billion.
  • The growth of Layer-2 solutions can be attributed to platforms like Arbitrum and Base, with Base reaching $500 million in TVL within two months of its launch.
  • Layer-2 solutions offer cheaper and faster transactions, attracting investors and gaining support from major players like Coinbase.
  • While Layer-2 solutions are part of the DeFi market, they differ in the protocols deployed compared to Layer-1 DeFi chains.
  • Base and Arbitrum are among the top Layer-2 solutions, with Base being the third largest and Arbitrum being the largest with $5.3 billion locked.
  • Layer-2 solutions have experienced significant growth in TVL compared to Layer-1 DeFi protocols, which have seen little change in the past nine months.
  • The emergence of Layer-2 solutions raises concerns about the development of faster and cheaper Layer-1 chains.

The article highlights the significant growth and potential of Layer-2 solutions in the crypto market, particularly in the DeFi sector. It also raises concerns about the stagnation of Layer-1 DeFi protocols and the need for faster and cheaper solutions.

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You May Ask

What is the current value of Layer-2 solutions in the crypto market?Which Layer-2 solution has reached $500 million in TVL within two months of its launch?What are the advantages of Layer-2 solutions compared to Layer-1 DeFi chains?Which Layer-2 solution is currently the largest in terms of funds locked?What concerns are raised by the emergence of Layer-2 solutions in relation to Layer-1 chains?

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