Ethereum Layer 2 Networks Reach $13 Billion TVL Milestone Despite Challenges

Ethereum layer 2 networks have reached a significant milestone with a total value locked (TVL) of $13 billion within their contracts, as per L2Beat data. Despite challenges in user experience and security, the trend of increasing interest in layer 2s is expected to continue. There are currently 32 Ethereum layer 2 networks, including Arbitrum One, Optimism, Base, Polygon zkEVM, and Metis. While layer 2 networks have thrived due to successful marketing efforts and high yields, they still face challenges in terms of user experience and centralization. The competition from layer 2s is expected to push for improvements to layer 1s, resulting in higher throughput for the foundational layers. Additionally, the number of layer 2s is increasing, with OKX and Kraken rumored to be building their own.