{"id":171260,"date":"2023-10-10T08:09:50","date_gmt":"2023-10-10T02:39:50","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=171260"},"modified":"2023-10-10T08:09:50","modified_gmt":"2023-10-10T02:39:50","slug":"layer-2-blockchains-host-most-ethereum-transactions-messari-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/layer-2-blockchains-host-most-ethereum-transactions-messari-crypto-news\/","title":{"rendered":"Layer-2 Blockchains Host Most Ethereum Transactions: Messari – Crypto News"},"content":{"rendered":"
\n

Ascending to 61% of all transactions, <\/span>Ethereum<\/span><\/a>\u2019s Layer-2 networks were home to a majority share of activity in the third quarter, according to Messari\u2019s latest State of Ethereum <\/span>report<\/span><\/a>.<\/span><\/p>\n

Kunal Goel<\/span><\/a>, senior research analyst for Messari, wrote that the surge was spawned by the explosive launch of Base\u2014which briefly overtook the number of transactions happening on Ethereum’s mainnet\u2013along with the unexpected popularity of the <\/span>Friend.tech<\/span><\/a> social token platform.<\/span><\/p>\n

Goel said he was actually caught off guard by the aforementioned combination. \u201cThe most impressive thing is Base’s quick growth and how just one app can turn things around for any blockchain,\u201d he told<\/span> Decrypt.\u00a0<\/span><\/i><\/p>\n

He explained that new chains \u201ccan suffer from a cold start problem,\u201d but thankfully for Base, Friend.tech helped onboard a lot of users and funds. \u201cUsers need developers to make good apps, and developers need users to want to launch apps,\u201d Goel said, adding, “it’s very good for Base that Friend.tech chose it for launch.\u201d<\/span><\/p>\n

The analyst remains cautious, however. \u201cIt is still a bear market, and interest and enthusiasm across the board is low.\u201d<\/span><\/p>\n

Incubated by Coinbase, <\/span>Base<\/span><\/a> has seen impressive growth since its launch in early August, which <\/span>reports<\/span><\/a> a total value locked (TVL) of $448 million, according to a <\/span>Dune dashboard<\/span><\/a> by 21.co. This firmly places it in the top four layer-2 solutions, behind Arbitrum, Optimism and zkSync Era.\u00a0<\/span><\/p>\n

Arbitrum<\/span><\/a> continues to be the most utilized by Ethereum users, with 600,000 average daily transactions, offering a 200,000 margin from the main competitors mentioned by Messari: Base and <\/span>Optimism<\/span><\/a>. These two, wrote Goel, have \u201ccannibalized\u201d Arbitrum\u2019s network activity, with transactions dropping 36% during the third quarter.\u00a0<\/span><\/p>\n

21.co\u2019s Dune dashboard reveals an important lead for Arbitrum in terms of TVL, as well. Its $4.22 billion is nearly threefold that of Optimism, which lands in second, at $1.27 billion. That said, both have been <\/span>flipping<\/span><\/a> their market capitalizations of late, and <\/span>according to<\/span><\/a> Coingecko, the former leads with a $30 million margin, sitting currently at $1.067 billion.\u00a0<\/span><\/p>\n

As per Goel, the fact that Layer-2s are taking the lead in terms of transaction throughput is not surprising. He told <\/span>Decrypt <\/span><\/i>that \u201cthe longer-term view has always been that L2 transactions will overtake Ethereum’s,\u201d adding, \u201cit was clear during the bull market of 2020-21 that Ethereum mainnet’s block space alone wasn’t going to be enough.\u201d<\/span><\/p>\n

The view resonated with <\/span>Eliezer Ndinga<\/span><\/a>, head of research for 21.co. He told <\/span>Decrypt <\/span><\/i>that his company had predicted this to be the trend, since \u201cblockchains are quite limited in scale.\u201d\u00a0<\/span><\/p>\n

Ndinga explained that these scaling solutions are \u201canalogous to how bandwidth pushed the boundaries of what\u2019s possible on the Internet from the era of dial-up where web pages were taking minutes to load on a web browser.\u201d\u00a0<\/span><\/p>\n

The analyst bullishly called these layer-2s \u201ca force to be reckoned with,\u201d especially as \u201creputable financial institutions\u201d start to adopt the technology.\u00a0<\/span><\/p>\n

What Goel unveiled today has him bullish\u2013as it should the Ethereum community at large. \u201cThe greater activity there is on L2s, the higher their market caps, the higher security they want from Ethereum, and higher demand for Ethereum’s data availability service,\u201d he told <\/span>Decrypt<\/span><\/i>.<\/span><\/p>\n

He also shared what \u201cthe biggest thing\u201d to watch is: how much cheaper L2s can get after the <\/span>Dencun upgrade<\/span><\/a>, and \u201conce they get cheaper,\u201d how much more activity they will see.<\/span><\/p>\n

\u201cMy long-term view is that all DEX trades should move to L2s as lower transaction fees help the most with high-velocity transactions,\u201d he concluded.\u00a0<\/span><\/p>\n

\n
<\/p>\n

Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ascending to 61% of all transactions, Ethereum\u2019s Layer-2 networks were home to a majority share of activity in the third quarter, according to Messari\u2019s latest State of Ethereum report. Kunal Goel, senior research analyst for Messari, wrote that the surge was spawned by the explosive launch of Base\u2014which briefly overtook the number of transactions happening […]<\/p>\n","protected":false},"author":2,"featured_media":171261,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-171260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/171260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=171260"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/171260\/revisions"}],"predecessor-version":[{"id":171263,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/171260\/revisions\/171263"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/171261"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=171260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=171260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=171260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}