Ethereum Layer2 TVL Falls to $5B, Hitting Two-Year Low

TVL in Ethereum Layer2 networks drops to $5 billion, the lowest since 2023, down from a $35 billion peak in 2024.

Woofun AI data shows that the total value locked in Ethereum Layer2 networks has declined to approximately $5 billion. This figure represents the lowest level recorded since 2023 and marks a substantial decrease from the nearly $35 billion peak observed in 2024. Optimistic Rollup solutions continue to dominate the sector, while ZK solutions, which contributed to growth during the peak period, have experienced a comparable decline. The current levels remain above the baseline established between 2021 and early 2022.