The Total Value Locked (TVL) in Ethereum Layer Two (L2) networks has risen to a new high as gas fees continue to rise and adoption continues.
Layer 2 analytics platform L2beat is currently reporting that the total value of the value locked across various L2 protocols and networks has reached an all-time high of $ 5.64 billion.
L2 scaling solutions offer much higher transaction throughput and lower transaction fees, and they adopted the highest average gas fees in the history of the Ethereum network in November.
Hit new ATHs in $ ETH Locked in shift2
– Evan Van Ness (@evan_van_ness) November 22, 2021
Arbitrum has the lion’s share of the L2 market at $ 2.67 billion, or about 45% of the total.
The decentralized derivatives exchange dYdX ranks second at $ 975 million in TVL, and Loopring L2 DEX ranks third at $ 580 million, but their own LRC token makes up most of their blocked value.
Layer 2 TVL has more than doubled since early October, increasing 110% from $ 2.68 billion to current levels.
Related: Binance opens Layer 2 ETH custody accounts with Arbitrum One integration
According to Bitinfocharts, the average Ethereum transaction fees are currently around $ 40. They hit their second-highest ever high of around $ 65 on November 9 and are up 700% in the past four months.
Gas prices vary by operation, a simple ERC-20 token transfer can currently cost around $ 45, and a more complex smart contract interaction or uniswap swap can cost a painful $ 140, according to Etherscan.
Registering a name with the Ethereum Name Service can cost hundreds of dollars in gas, although the actual domain name costs only a few dollars a year.
Multichain-compatible DeFi platforms have seen record inflows since October as investors and developers tried to bypass the Ethereum network due to rising gas fees.