Ethereum Layer 2 Networks Top This Area

Entrepreneur Paolo Rebuffo shared data from Dune Analytics to show the massive gas (transaction fee) consumption of Ethereum (ETH) Layer 2 networks. According to the data, more than 100 billion gas (transaction fees) were consumed to validate transactions and also operate bridges in L1.

Rebuffo stated that in May 2022, the gas (transaction fee) threshold of 50 billion was exceeded. The gas (transaction fee) consumed by L2 systems has doubled in the six-month timeframe. Gas consumption had reached an all-time monthly high, with a huge jump from 33.2 billion at the start of the year.

Optimism, Arbitrum, dYdX, Starkware and Loopring (LRC) are the best known layer 2 networks in the market. Optimism dominates the market with almost 50%. Arbitrum is in second place with around 30%, and dYdX is in third place. We can say that the remaining group has almost no market share. According to data at time of publication, more than 25 billion gas (transaction fees) are spent regulating L2 activity on a weekly basis. As mentioned, the monthly gas (transaction fee) spent has reached 104 billion.

In 2022, adoption of Layer 2 solution has increased significantly as a result of several notable developments occurring simultaneously. GameStop introduced ImmutableX, the NFT marketplace for Layer 2 solutions. In October, well-known liquid staking program Lido also debuted on tier 2 networks Optimism and Arbitrum. Layer 2 adoption has increased noticeably over the past year. We can say that these 2nd layer solutions also help to finalize transactions quickly and with low gas (transaction fee) fees.