ON–229: Layer 2s 🚅

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@Sakura please summarize this article, thanks uwu.

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Reading https://ournetwork.substack.com/p/on229-layer-2s

TLDR :rocket:

This article provides an in-depth analysis of the current state of Layer 2 networks on Ethereum, covering key developments, usage metrics, and insights across Optimism, Base, Arbitrum, Mode, zkSync, and Blast.

Key Points :key:

  • Layer 2 user base up 400% YoY, now at ~5M weekly users
  • Ethereum’s Blobs upgrade significantly reduces Layer 2 data availability costs, leading to sub-1 cent median transaction fees
  • Base has emerged as a major Layer 2 player, with a tripling in daily active users and 500% increase in transactions since the Blobs upgrade
  • Optimism’s Superchain model is attracting over $6B in deposits, with Base and Mode being the biggest contributors
  • Arbitrum One hits new highs in network usage and ETH balance, while transaction fees drop by 86% after ArbOS updates
  • Mode’s growth strategy of incentivized usage via mBTC launch leads to a $250M+ increase in TVL
  • zkSync dominates the zk-rollup landscape, with 342k+ daily active addresses and 1.2M+ daily transactions
  • Blast network sees steady growth in contract deployments and transaction volume, with an ETH yield forecast of 23k

In-depth Summary :memo:

The article provides a comprehensive overview of the current state of Layer 2 networks on Ethereum, highlighting the significant growth and advancements across various platforms.

One of the key developments is Ethereum’s Blobs upgrade, which has dramatically reduced the data availability costs for Layer 2s, leading to a drop in median transaction fees to below 1 cent. This has contributed to the 400% year-over-year increase in the Layer 2 user base, which now stands at around 5 million weekly users.

The article delves into the performance of individual Layer 2 networks, such as Base, which has emerged as a major player in the space, with a tripling in daily active users and a 500% increase in transactions since the Blobs upgrade. Optimism’s Superchain model, which bundles multiple Layer 2s together, has also attracted over $6 billion in deposits, with Base and Mode being the biggest contributors.

Arbitrum One has hit new highs in network usage and ETH balance, while also experiencing a significant drop in transaction fees (86%) after the ArbOS updates. Mode, on the other hand, has seen a $250 million increase in TVL following the launch of mBTC, a BTC-pegged token, and its incentivized usage strategies.

The article also highlights the dominance of zkSync in the zk-rollup landscape, with over 342,000 daily active addresses and 1.2 million daily transactions. Additionally, the Blast network has seen steady growth in contract deployments and transaction volume, with an ETH yield forecast of 23,000.

ELI5 :hugs:

This article talks about how the Ethereum network has been getting a lot better at handling a lot of transactions at once, thanks to something called “Layer 2” networks. These Layer 2 networks have seen a huge increase in the number of people using them, with around 5 million people using them every week now.

One big reason for this is that Ethereum made an upgrade called “Blobs” that made it much cheaper for these Layer 2 networks to store and process transactions. This has led to transaction fees on these Layer 2 networks being less than 1 cent on average.

The article also talks about how some specific Layer 2 networks, like Base, Arbitrum, and Mode, have been growing really fast and attracting a lot of users and activity. It also mentions how the zk-rollup network called zkSync is dominating the zk-rollup space.

Overall, the article shows that the Ethereum ecosystem is continuing to grow and improve, with Layer 2 networks playing a big role in making the network more scalable and accessible.

Writer’s Main Point :dart:

The main point of this article is to provide an in-depth analysis of the current state of Layer 2 networks on Ethereum, highlighting the significant growth, advancements, and key developments across various platforms. The article showcases the impressive user adoption, transaction volumes, and technological improvements that have transformed the Layer 2 landscape, making Ethereum more scalable and accessible for developers and users alike.