December ‘24 Layer 2 Landscape Recap

The total value locked (TVL) across all Layer 2 (L2) networks dipped by over $4 billion in December, a downtick of 8.2% MoM. Despite the inflow of liquidity that L2s saw in November 2024, it was insufficient to counter the drop in crypto prices towards the end of December 2024 as the crypto markets saw a pullback.

Towards the end of 2024, we observed a tapering in user activity while L2s’ gas consumption continued to grow, with a decrease of 4 million transactions and a 58.7% MoM increase in gas expenditure from 746 ether to 1,184 ether. Additionally, L2 operators experienced a continuation of the uptrend in their revenue, from 4,194 ether to 5,303 ether, with Base as the leading contributor, as it has been for the past 3 months.