November ‘24 Layer 2 Landscape Recap

The total value locked (TVL) across all Layer 2 (L2) networks surged by nearly $15 billion in November, representing a 40.9% MoM increase. Although many L2s did see an inflow of liquidity in November, this sudden spike in TVL stemmed primarily from the price appreciation of tokens held on these L2s rather than a net inflow of liquidity.

In October’s L2 recap, we observed a resurgence in user activity and highlighted the potential for renewed interest in the L2 ecosystem. This month, we are witnessing the continuation of this trend, with an increase of 38 million transactions and a doubling in gas expenditure from 365 ether to 746 ether. Correspondingly, L2 operators have also seen a significant increase in revenue, from 2,363 ether to 4,194 ether, with Base as the leading contributor.