The volume of assets bridged from Ethereum to the L2s has jumped dramatically in the first three months of 2024.
Built atop the base layer of Ethereum, these so-called layer -2 chains were envisioned to address Ethereum’s scalability problem.
It was planned that over time, these L2s would handle the majority of low-value transactions, with the base layer taking care of security and decentralization.Bridging, as you might already be aware, is the process of transferring funds from L1 to L2. This is done to take advantage of the high-speed and low-cost capabilities of the L2s.
As seen from the data above, the total value deposited has surpassed $25 billion as of the 16th of March, representing a 5x jump from the same time last year.The deployment has resulted in a sharp drop in gas fees on L2s, in some chains by as much as 90%. Consequently, users scurried to get their funds transported to enjoy the cheaper costs.
As of this writing, ETH was exchanging hands at $3,570 with a fall of 4.56% in the last 24 hours, according toAniket is a full-time journalist at AMB Crypto. With experience in news publishing and content management, he is now increasingly tangled up in the web of cryptocurrencies and blockchains. His focus lies on the intersection between cryptos and traditional finance. He prefers DC over Marvel, cats over dogs and Hyderabadi Biryani over Kolkata Biryani.
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