Ethereum's Layer 2 TVL Plummets 10.7% in a Week

Ethereum's Layer 2 Total Value Locked (TVL) has dropped to $342.9 billion, marking a 10.7% decrease over the past seven days. This decline is a significant shift in the Ethereum ecosystem, with the top five locked Layer 2 protocols experiencing varying degrees of change.

The top five Layer 2 protocols by TVL are Arbitrum One, Base, OP Mainnet, ZKsync Era, and Starknet. Arbitrum One, the largest Layer 2 protocol by TVL, has seen a 9.09% decrease in the past seven days, with its TVL standing at $13.07 billion. Base, the second-largest Layer 2 protocol, has experienced a 9.69% increase in TVL, with its current value at $11.85 billion.

OP Mainnet, the third-largest Layer 2 protocol, has witnessed a 12.9% decrease in TVL, with its current value at $4.57 billion. ZKsync Era, the fourth-largest Layer 2 protocol, has seen a 10.10% increase in TVL, with its current value at $0.839 billion. Starknet, the fifth-largest Layer 2 protocol, has experienced a 11.7% increase in TVL, with its current value at $0.593 billion.

The decline in Ethereum's Layer 2 TVL can be attributed to several factors, including market conditions, regulatory uncertainty, and competition from other blockchain networks. As the Ethereum ecosystem continues to evolve, it will be crucial to monitor the performance of Layer 2 protocols and their impact on the overall Ethereum network.