L2 ecosystem throughput set to outpace Solana by 100x in 5 Years
The L2 ecosystem remains vibrant, with both protocols and Ethereum Virtual Machine (EVM) scaling solutions experiencing rapid growth and widespread adoption, noted Ryan Berckmans, a member of the Ethereum community, in a June 26 post on X.
Berckmans' remarks were in direct response to a statement from Rushi Manche, the founder of Movement Labs, who asserted that EVM L2s will be worthless, being vastly inferior to SOL.
In retort, Berckmans emphasized that the L2 arena is expanding tremendously, referencing analytics platforms such as L2beat to support his point, and noted that Coinbase has developed an EVM L2, as have Worldcoin and Immutable X.
Berckmans further highlighted that layer-2 technologies are considered fundamental to Ethereum’s success beyond mere scaling fixes. He argued that the offerings of L2 solutions on Ethereum provide greater value when compared to other first-layer networks, thanks mostly to Ethereum’s established "credible neutrality" at its foundation.
He then compared Ethereum's ecosystem with its rivals, pointing out its significant advantages in terms of liquidity, developed protocols, and the sheer volume of locked-in value. This, he posits, directly challenges Manche’s assertions of Solana’s superiority.
Berckmans's forecasts indicate that L2s are on track to outperform Solana's processing capabilities significantly in the forthcoming years.
Setting aside individual L2 performances, the transaction per second capacity of the entire L2 ecosystem will soon dwarf that of Solana's, potentially by a hundredfold within five years.
He further proposed that Ethereum's second-layer ecosystem is more appealing to both corporations and governments, attributing this to its enhanced security and decentralization. Berckmans described a "settlement network effect", indicating that the proliferation of layer-2 protocols magnifies Ethereum's settlement benefits while minimizing costs.
Concluding, Berckmans refuted Manche’s assertions suggesting the ineffectiveness and redundancy of EVM L2s, stating that neither of those statements holds truth.
As of now, the total value locked (TVL) in all L2 protocols stands at $42.86 billion, as per L2beat. This TVL has remained stable since March, despite an 18% downturn in the crypto market over this Interval. From the same time last year, the L2 TVL has witnessed a growth of approximately 280%.
Leading the L2 sector is Arbitrum One, boasting a TVL of $17 billion, which accounts for nearly 40% of the market share. Following closely are Coinbase Base and OP Mainnet, with a TVL of $7.3 billion and $6.4 billion, respectively, illustrating the diverse and expanding landscape of layer-2 solutions.
With 58 protocols listed on L2beat, the ecosystem's growth is undeniable compared to the smaller number listed just a year ago.
