The TVL in Ethereum's Layer 2 network has experienced a significant decrease of 12.4% in the past week, amounting to $46.25 billion. This decline in value is due to falling Ethereum prices, despite a 3.02% increase in the amount of Ethereum deposited.
Layer 2 solutions aim to improve transaction efficiency by processing data off the main blockchain, resulting in reduced fees and faster processing speeds.
In terms of market leadership, Arbitrum One holds the top position with a TVL of $19.15 billion, followed by Coinbase Base at $12.8 billion and Optimism at $7.14 billion. The Blast network has a TVL of $1.23 billion.