April 2024 Layer 2 Landscape Recap

The total value locked (TVL) of all Layer 2s (L2s) fell by 1.5% month-on-month (MoM), a decline of roughly $565 million. This was largely attributed to the fall in prices of most crypto assets in April but was offset by the inflow of liquidity into a few L2s, such as Base, Scroll, and Linea. Additionally, gas consumption for most L2s witnessed further decline, seeing as April was the first full month where data blobs were used. However, the decline in gas consumed was also exacerbated by the fall in on-chain transactions.

One of the notable on-chain activities witnessed in April was the ongoing uptrend of both TVL and daily transactions on Mode Network, a relatively new OR that launched its mainnet on January 31, 2024. Up until March, its TVL growth remained modest, at approximately $124 million. However, in April, while most other L2s saw a slump in their TVLs, Mode’s TVL continued to grow significantly, reaching $452 million by the end of April.