December Layer 2 Landscape Recap

The crypto markets climbed significantly in December, with most Layer 2s (L2s) seeing notable price increases in their native tokens and spikes in their total value locked (TVL). On-chain activity has grown across the board, with a few exceptions, which is typically a bullish sign, as that indicates users returning to blockchain applications, instead of merely speculating on price via centralized exchanges. Considering how most of the on-chain activity was focused on Solana, a Layer 1, the spike in activity on Layer 2s is likely a spillover effect and may continue to grow with the potential airdrop from various L2s that are scheduled for 2024.

The most notable development in December for L2s would have to be the rapid rise of Manta Pacific. Manta Pacific is an Optimium developed by the team behind Manta Atlantic, a zero-knowledge-focused Layer 1 that aims to deliver user-friendly access to zk-enabled applications. In December, Manta Pacific’s TVL grew from $32 million to almost $500 million.