Ethereum L-2 Networks Are Expected to Grow Rapidly in 2023.

Leading layer-2 networks on Ethereum have seen a surge in daily active users and fees recently.

Over the past few months, Ethereum layer-2 networks have experienced tremendous growth, and this pattern is expected to continue in 2023.

Recent data indicates that the top layer-2 networks have experienced an increase in daily active users, which has resulted in an increase in fees for the corresponding ecosystems.

Token Terminal, an analytics company, reports that Polygon is in first place with 313,457 daily active users as of January 17. Earlier in January, this number rose to over 600,000 daily active users.

This represents a 30% increase in activity since the beginning of October, earning Polygon daily fees of around $55,000.

Even more quickly than optimism, optimism has increased daily active users by 190% over the last three months. As a result, daily network fees increased to $119,475 from the start of the year or over 140%.

There are currently 41,694 daily active users on Arbitrum One, up around 40% from three months ago. The data shows that the network’s daily fees are just over $40,000.

According to L2beat, an analytics tool for the L2 ecosystem, Arbitrum presently holds a 52% market share in terms of total value locked (TVL), which is valued at $2.55 billion. Over the past week, Aribtrum’s TVL has increased by 9%.

More than 80% of the collateral that is locked in layer-2 platforms is made up of the two together.

Over the past week, TVL for all L2s has increased by approximately 10%, bringing the total TVL to $4.89 billion. That number, though, is still down 34% from its April peak.

However, this reduction represents less than half of the decline DeFi TVL has seen since its peak. According to DeFiLlama, DeFi collateral has decreased by 75% since December 2021, indicating that there is currently more demand and impetus for layer-2 networks.