Layer 2 activity is increasing and has already surpassed Layer 1 Ethereum in some metrics, such as transactions per second.
Layer 2 networks have higher aggregate transactions per second (TPS) than Ethereum. This, however, does not imply overall activity on those networks. On December 20, there were 992,470 transactions on Ethereum, according to Etherscan.
Delphi Digital, a crypto research firm, reported the ‘flippening’ on December 21. It went on to say that the top two layer 2 networks were Arbitrum and Optimism.
The chart shows that the flip occurred in late September but that it has remained above Ethereum TPS ever since. According to the chart, Ethereum currently processes around 12.5 TPS, and L2 networks combined are closer to 15 TPS. L2 activity and TPS peaked at 25 TPS in late October.
The difference is currently marginal, and the only real takeaway is that layer 2 TPS has been rising since August.
The number of TPS on Ethereum is currently fixed. When sharding is implemented on the network, it will only increase throughput. This is not expected to happen until late 2023 at the earliest.
L2beat, a Layer 2 industry analytics platform, has launched a new activity tracker for the ecosystem. It currently reports that the average Ethereum base layer TPS is 11.49, while the L2 TPS is 17.68.
Furthermore, it confirms the increase in activity for all L2 networks studied since mid-October. In terms of TPS, L2 activity really took off in August 2021.
The platform also stated that over 152 million transactions were processed by both layers of Ethereum. It also stated that 58% of them occurred on layer 2.
It was noted that activity on Arbitrum and Optimism alone is close to flipping Ethereum L1 daily TPS.
Since August, the total value locked in the layer 2 ecosystem has been declining. However, this is most likely due to falling crypto asset prices rather than capital being drawn out of various networks.
According to L2beat, the total TVL of all measured L2 networks is $4.25 billion. Furthermore, this represents a 43% drop from the all-time high of $7.48 billion in April.
Arbitrum One dominates the market with a 54% market share and a TVL of $2.3 billion. According to the platform, optimism ranks second with a $1.14 billion TVL and a 27% market share.