August ‘24 Layer 2 Landscape Recap

The total value locked (TVL) across all Layer 2 (L2) networks experienced a significant decline of 15.3% month-on-month (MoM) in August, driven primarily by the broader downturn in cryptocurrency prices. Conversely, the total transaction count on L2 networks continued its three-month upward trend, recording a 15.1% MoM increase. Though there are new inclusions in the analysis, such as Gravity and Lisk, there are also notable surges in older L2s, such as Blast and Manta Pacific, which saw a 55.1% and 1,401% MoM increase in their transaction count. These surges come despite their TVLs falling by 30.5% and 20.5%, respectively. 

As there are no clear reasons for these observations, these increases may be anomalies rather than indicators of a sustained trend. To draw a definitive conclusion about a persistent uptrend in Layer 2 (L2) activity, a broader market analysis is required. Currently, most L2 networks continue to exhibit healthy user activity, a promising sign for their long-term objective of achieving mass adoption.