BlockBeats report: On July 29, the total value locked (TVL) in the Ethereum Layer 2 ecosystem fell to approximately $5 billion, reaching its lowest level since 2023 and largely erasing the capital accumulated during the rapid growth of the L2 ecosystem in 2024.
Data shows that the combined TVL of the three major networks—Optimism, Base, and Arbitrum—currently stands at approximately $4.8 billion, accounting for 96% of the entire L2 ecosystem.
The report notes that the cooling of the L2 ecosystem coincides with the broader challenges facing Ethereum. This year, several senior executives at the Ethereum Foundation have departed, and organizational adjustments have been made. Meanwhile, traditional financial institutions exploring blockchain infrastructure are increasingly turning their attention to alternative solutions beyond Ethereum.
For example, DTCC is advancing the tokenization of government bonds in a multi-chain environment, and JPMorgan has extended JPM Coin to multiple public blockchains. However, stablecoins remain a crucial pillar of the Ethereum ecosystem, with USDC and USDT still primarily settled via Ethereum and its Layer 2 networks, enabling Ethereum to continue serving as a vital bridge between traditional finance and the crypto market.