Total value locked in Ethereum Layer 2 networks has slid back to roughly $5 billion, a level last seen in 2023.
This undoes most of the buildup from 2024, when mindshare was focused on the successful launches of L2s like Optimism, Arbitrum, and ZKsync.
Optimistic rollups such as Optimism, Base, and Arbitrum continue to dominate TVL, accounting for $4.8 billion, or 96% of the total.
The retreat in TVL has lined up with a rough stretch for Ethereum, too.
The Ethereum Foundation has lost several senior leaders since the start of the year, including co-executive directors and broader foundation layoffs.
