2024 L2 Recap

The L2 landscape has grown considerably in 2024, with numerous mainnet launches and token airdrops. This brought renewed interest in the L2 space for the first half of the year but tapered off towards the latter half. It also highlights the prevalence of mercenary capital in the L2 ecosystem, as many of these users are farming the L2 ecosystems for potential rewards. While farmers do not necessarily harm L2 ecosystems, the decline of ecosystem activity post-airdrop suggests that many of the newer L2s lack significant user retention.

L2 Total Value Locked has grown significantly in 2024, from $22.4 billion to $42.8 billion, as of this writing. However, most of this increase came in the first 3 months of 2024, and TVL has stagnated ever since.