The Layer 2 ecosystem remains strong with EVM (ethereum Virtual Machine) scaling protocols and platforms growing rapidly and becoming ubiquitous, contrary to some bearish claims, said ethereum community member Ryan Berckmans in a post on x on the 26th. of June.
His comments came in response to a post by Movement Labs founder Rushi Manche, who twitter.com/rushimanche/status/1803834880549347690″ target=”_blank” rel=”noopener” data-wpel-link=”external”>saying“L2 EVMs will reach zero. For the most part, they are all crap compared to SOL.”
Berckmans countered, stating that the L2 ecosystem continues to “grow like crazy,” citing ecosystem analytics platforms like L2beat before adding: “Coinbase created an L2 EVM. So did Worldcoin. So did Immutable x.”
Impressive layer 2 growth
Additionally, Layer 2s are considered an integral part of ethereum, not just a scaling solution, he said before arguing that L2s on the second largest blockchain offer better value than alternative Layer 1 networks due to the ” “credible neutrality” of ethereum as a base layer.
Furthermore, ethereum’s ecosystem is larger and more diverse than its competitors in terms of liquidity, mature protocols, and total value locked, countering Manche’s arguments that Solana is superior.
<blockquote class="twitter-tweet”>
L2s and EVMs are taking over
For the most part, people who bet against L2 and EVM are going to lose a lot.
I thought the EVM L2 bear post below was particularly incorrect and wanted to respond to it in detail.
TL;DR ignore the FUD, L2s and EVMs are growing to global ubiquity.…
– Ryan Berckmans ryanb.eth (@ryanberckmans) twitter.com/ryanberckmans/status/1806036143579787663?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>June 26, 2024
Berckmans predicted that L2s will significantly outperform Solana’s transaction throughput in the coming years.
“Regardless of any L2, the overall total tps of the L2 ecosystem will soon far exceed Solana tps. In five years, it will multiply by 100.”
He also argued that ethereum's layer 2 ecosystem is seen as more attractive to corporations and governments due to its security and decentralization properties. He described a “settlement network effect” for ethereum, where the growing ecosystem of layer 2 protocols increases profits and reduces settlement costs on ethereum.
Berckmans concluded that Manche's comments make it sound like L2 EVMs are dead and that L2s aren't a great deal, adding: “But neither of those things are true.”
“What we’re actually seeing is that ethereum’s L2 model is taking off, and EVM is leading the pack by far.”
L2 ecosystem perspective
The total value locked across all L2 protocols is currently $42.86 billion. according to L2beat. Furthermore, this TVL has remained stable since March despite cryptocurrency markets falling 18% during the same period. Since the same time last year, L2 TVL has increased about 280%.
Arbitrum One leads the L2 group with a TVL of $17 billion and a market share of almost 40%. Coinbase Base is in second place with $7.3 billion TVL and a 17% share and OP Mainnet is in third place with $6.4 billion and 15%.
L2beat lists 58 protocols, demonstrating the growth of the ecosystem compared to the handful that were listed roughly a year ago.
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