The total value of fixed assets (TVL) on the Ethereum (ETH) layer 2 network has exceeded $20 billion.
According to the L2beat platform, TVL briefly exceeded $21 billion on January 5, before eventually falling to $20.41 billion as of this writing. This is a new milestone for Ethereum-based Layer 2.
Moreover, Tier 2 TVL is not far from its peak, having increased 33% over the past month to its current level of $20.4 billion. However, L2 TVL has grown by a whopping 333% over the past year, from approximately $4.8 billion in early January 2023.
According to DeFiLlama, during the same period, the DeFi market grew by just 38% in terms of TVL.
Arbitrum One remained the market leader with nearly 50% share in TVL, accounting for approximately $10 billion. Optimism (OP Mainnet) ranked second with a TVL of $5.8 billion and a market share of 28.7%.
The remaining Tier 2 platforms are relatively small in terms of TVL, with Metis Andromeda and Base coming in third and fourth with TVL worth approximately $750 million, respectively.
Earlier this week, Arbitrum One’s TVL surpassed $10 billion, setting a new record. This figure has fallen from over $10.2 billion to $10.05 billion at the time of writing. Interest has grown over the past year, with global decentralized finance (defi) TVL rising to $55.34 billion by early 2024.