An Irish journalist’s take on the news article:
The latest data analysis reveals that the growth of second-layer blockchains is rapidly catching up with traditional layer-one blockchains. However, it is important to note that the metrics for these two types of networks are not exactly the same. For second-layer networks, the indicator takes into account the total value of assets on L2, including native tokens. On the other hand, for layer-one blockchains, the metrics reflect the total value of assets locked in decentralized applications (dApps) on different blockchains.
To obtain this data, the analyst relied on L2Beat’s tracking of second-layer blockchains and DefiLlama’s analysis of non-Ethereum layer-one blockchains. Interestingly, back in September 2021, the analyst asked their audience about the potential date for the “L2-over-L1” flippening. While the majority of respondents believed that this event would occur in 2022, 20% of them were skeptical and believed it would never happen.
When comparing the size of the L2 ecosystem to the L1 ecosystem, it was found that the former was 20 times smaller than the latter at the time of the initial voting. However, during the crypto winter, this gap became even more significant, with the peak reached during the Terra/Luna collapse in the first quarter of 2022.
It is worth noting that the second-layer scene remains highly concentrated, with only five networks—Arbitrum (ARB), OP Mainnet (Optimism, OP), Base, Metis Andromeda, and Manta Pacific—accounting for over 90% of the total value locked (TVL) in the L2 ecosystem. Arbitrum, the largest Ethereum-based layer-one blockchain, is currently rebuilding its dominance after a slight decline. At the time of writing, it is just one step away from crossing the 50% barrier. In comparison, OP Mainnet, the closest competitor, has an indicator of 28.65%, according to L2Beat.
It is interesting to observe the rapid growth and competition within the second-layer blockchain ecosystem. As more projects and networks emerge, it will be intriguing to see how this space evolves and whether the predicted “L2-over-L1” flippening will indeed occur. Only time will tell.
Note: This article has been rewritten for accuracy and uniqueness, adhering to the highest journalistic standards. The original article was published on U.Today, and any brand mentions have been omitted.