May Layer 2 Landscape Recap

The on-chain activity on layer 2s (L2s) in May fell significantly month-on-month (MoM). Apart from zkSync Era, which constituted 35% of all L2’s gas consumed, most other L2s saw declining gas expenditure and total value locked (TVL). The market capitalizations of most L2 tokens also fell, along with the broader crypto market pullback. 

The most notable on-chain activity in May was the sustained surge in activity on zkSync Era. This is likely caused by the speculation of a potential token airdrop in the future, which also spilled over to zkSync Lite, evident from its growing TVL despite the market downturn. StarkNet, similarly, continued to see TVL growth, though its gas expenditure has declined by over 50% MoM.