Why Some Ethereum Layer 2s are Thriving While Others Lose Relevance
analyticsinsight.net Jun 14, 2026

Why Some Ethereum Layer 2s are Thriving While Others Lose Relevance

AI-summarised brief · reviewed before publication

Ethereum Layer 2 networks, designed to alleviate high fees and slow transaction speeds on the main Ethereum chain, have undergone significant changes. A few years ago, numerous new projects entered the market, but today, only a small number continue to grow, while many others struggle to attract users and developers. Recent data shows that Base has become the largest Ethereum Layer 2 network by DeFi total value locked (TVL), holding approximately 46.6% of all Layer 2 DeFi TVL. Arbitrum and Optimism also remain major players, with Arbitrum controlling around 30.9% of Layer 2 DeFi TVL.

💡 Why It Matters

  • · The consolidation of Ethereum Layer 2 networks highlights the importance of ecosystem strength and developer support in determining a project's long-term success.
  • · The dominance of Base and Arbitrum underscores the value of established partnerships and reputation in attracting users and capital, while Optimism's broader approach demonstrates the potential benefits of collaborating with other chains to drive innovation and growth.