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Ethereum L2 Ecosystem Throughput Set to Surpass Solana 100x in 5 Years: Analyst
The Layer 2 ecosystem remains robust, with Ethereum Virtual Machine (EVM) scaling protocols and platforms growing rapidly and becoming more widely available, contrary to some pessimistic claims, Ethereum community member Ryan Berckmans said in a June 26 X post.
His comments came in response to a post by Movement Labs founder Rushi Manche, who She said“L2 EVMs will go to zero. They all suck compared to SOLs.”
Berckmans countered, saying that the L2 ecosystem is still “growing like crazy,” citing ecosystem analytics platforms like L2beat before adding: “Coinbase did an L2 EVM. So did Worldcoin. So did Immutable X.”
Impressive level 2 growth
Furthermore, layer 2s are seen as an integral part of Etherealnot just a scaling solution, he said before arguing that L2s on the second largest blockchain offer better value than alternative layer 1 networks thanks to Ethereum’s “credible neutrality” as the 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.
Berckmans predicts that L2s will significantly surpass Solana’s transaction capacity in the coming years.
“Regardless of a single L2, the L2 ecosystem’s cumulative tps will soon far exceed Solana’s tps. In five years, by about 100 times.”
He further argued that Ethereum’s Later-2 ecosystem is considered more attractive to businesses and governments due to its security and decentralization properties. He described a “settlement network effect” for Ethereum, in which the growing ecosystem of layer 2 protocols increases the benefits and reduces the costs of establishing on Ethereum.
Berckmans concluded that Manche’s comments make it sound like L2 EVMs are dead and that L2s aren’t all that great, adding, “But neither of those things are true.”
“What we’re actually seeing is that Ethereum’s L2 model is seeing success, and EVM is far and away leading the pack.”
L2 ecosystem perspectives
The total value locked across all L2 protocols is currently $42.86 billion, second at the L2 beat. Also. This TVL has remained stable since March, despite the cryptocurrency markets dropping by 18% in the same period. Compared to the same period last year, the L2 TVL has increased by about 280%.
Arbitrum One leads the L2 pack with a TVL of $17 billion and a market share of nearly 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 protocolswhich is a testament to the growth of the ecosystem compared to the handful of names listed about a year ago.