Ethereum Layer 2 Transaction Explosion: 200% Surge Post-Dencun Upgrade

The highly anticipated Dencun fork on March 13th has significantly boosted the adoption of Layer 2 solutions on Ethereum. This was evidenced by the surge in increased activity post-upgrade.

Intotheblock’s latest analysis revealed a similar trend as it noted a surge in the number of transactions on Ethereum’s layer 2 solutions after the Dencun upgrade. The statistics indicate a staggering 196% rise in transactions settled on the leading layer 2 platforms, climbing 5.67 million transactions.

• Among these, Base has emerged as the primary contributor, handling approximately 57% of the transactions. Following closely are Arbitrum and Optimism, processing 31% and 11%, respectively.
• This substantial uptick not only highlighted the growing adoption and demand of Layer 2 scaling solutions but also that ‘Base Spring’ has arrived as per ITB’s previous analysis.
• Just last week, Base’s transaction volume climbed above $1.6 billion million for the first time even surpassing already established players like Optimism as a result.

The number of transactions on ETH layer 2s has skyrocketed following the Dencun upgrade.

➖The number of transactions settled on the top L2s has increased by 196% to 5.67M.

➖Base currently processes ~57% of these transactions, followed by Arbitrum and Optimism with 31% and 11%… pic.twitter.com/tKnL4HXWIZ

— IntoTheBlock (@intotheblock) April 9, 2024

• Besides, Base has experienced a notable increase in network activity over recent months, primarily fueled by a growing frenzy surrounding memecoins.
• According to data compiled by DefiLlama data, the total value locked (TVL) on the Base network soared to a record high of $1.5 billion on April 9th, reflecting a whopping 235% rise since the start of the year, driven by the influx of meme coin frenzy into the network.
• Over the past couple of months, Layer 2 networks have noted significant expansion, with Dencun playing a pivotal role in their adoption.
• VanEck analysis even predicted that these scaling solutions could potentially reach a $1 trillion market capitalization by 2030.