Activity on Layer 2 (L2) networks, such as Base, Arbitrum, and Optimism, has reached new all-time highs, surpassing the traffic on the Ethereum blockchain by over 4.5 times. This indicates a permanent shift towards scalable chains. Transactions on the Ethereum main chain have stabilized but are primarily for high-value stablecoin transfers and ETH movements, with fewer swaps or NFT activities. L2 chains have seen an increase in complex transactions, particularly in the DeFi sector, and have accumulated liquidity from stablecoins. L2 activity has achieved new records, surpassing 10 million users on a weekly basis, compared to just 1.96 million users on Ethereum. Base remains the leader in L2 activity, with high-speed transactions and a significant amount of value locked. Stablecoins play a significant role in L2 adoption, with over $11 billion worth of bridged or native stablecoins on L2 networks, led by Arbitrum. However, most L2 chains have seen a slowdown in activity after the end of airdrop mining. L2 chains do not communicate directly with each other but rely on bridging and flows to and from Ethereum. The increased on-chain activity has resulted in higher costs for L2 networks, with regular spikes in rent paid to Ethereum. Ethereum transactions are still more expensive than L2 transactions, with L2 chains offering lower transaction fees. However, L2 chains retain real economic activity and demonstrate robust demand, with numerous chains competing for different types of activities.



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