Ethereum L2 Grows to $10B While 61% of Holders Stay in Profit
The post Ethereum L2 Grows to $10B While 61% of Holders Stay in Profit appeared on BitcoinEthereumNews.com.
Recent reports show significant growth within Ethereum’s Layer 2 (L2) ecosystem. According to Leon Waidmann, head of research at the Onchain Foundation, over $10 billion is now locked in Ethereum L2 solutions. This figure more than doubles Solana’s $4 billion, emphasizing Ethereum’s expanding dominance. With Layer 2 adoption accelerating, the impact is expected to be reflected in Ethereum’s price as the L2 ecosystem plays an increasing role in enhancing Ethereum’s utility. Waidmann also shared that Ethereum’s Layer 2 user base has hit an all-time high. Over 10 million active addresses were recorded, marking a 35.23% increase in the past week. Notably, 550,989 addresses are active across multiple chains, reflecting the growing interconnectivity between Layer 2 networks. Ethereum’s L2 dominance has also surged by 26.08%. This data shows how Layer 2 solutions are accelerating Ethereum’s utility and driving wider adoption of Web3 technologies. Increased Ethereum Holder Resilience Alongside the rapid adoption of Layer 2, the latest data from IntoTheBlock reveals that 61% of Ether holders are currently in profit. This resilience is especially evident when comparing previous market cycles. For instance, during the last bear market, the percentage of profitable holders dropped to a low of 46% while it dipped to only 3% after the 2017 cycle. However, Ethereum’s current cycle shows a stronger capacity for holders to maintain profitability, even through downturns. Further comparisons with historical data indicate that during the 2019/2020 period, Ether’s profit-making addresses briefly fell below 10%. While a similar decline could revisit bear market lows, the current environment suggests any downturn would likely be less severe. Whale Moves 16,636 ETH After 8 Years In a separate development, an Ethereum whale who had remained inactive for over eight years recently moved his assets. On September 15, at 7:25 PM UTC, the wallet holder made his first transaction…
Filed under: News - @ September 16, 2024 3:28 pm