Layers 2 are ushering in a new era in blockchain, says report

The evolution of blockchain into the next era is in full swing, and layer 2 (L2) is leading the way. With a significant increase in processing capacity and efficiency, L2 are ushering in a new era in blockchain, according to a new report from Pantera Capital.

The company claims that in the last two years, the Ethereum ecosystem has witnessed exponential growth through layer 2, achieving approximately 10 times greater scalability. L2 use the “rollup chain” concept, processing transactions in batches and settling them on an independent blockchain, which results in greater speed and lower costs.

Currently, the total transaction capacity of L2-based Ethereum exceeds 140 transactions per second (TPS), compared to the base layer’s 14 TPS.

Leading this movement, according to the company, is Arbitrum. Since its launch in 2021, Arbitrum has led the Layer 2 field across every important metric, from transaction volume and developer activity to on-chain fee revenue.

Arbitrum’s main differentiator, according to Pantera, is its compatibility with Ethereum, providing an almost identical experience for users and developers, but at a lower cost and with greater speed.

Layers 2 highlighted

The Arbitrum ecosystem has been growing rapidly, with over 500 projects and 1800 active developers per month. Additionally, more than $16 billion in assets have been transferred to Arbitrum, highlighting the trust and adoption of layers 2.

“Many mature teams have successfully migrated from Ethereum and other layer 2s to Arbitrum. For example, Uniswap, one of the leading decentralized exchanges, now conducts the majority of its transactions on Arbitrum, even after starting on Optimism”, he highlights.

Pantera points out that Arbitrum not only offers a scalable alternative to Ethereum, but also provides an improved experience for users and developers. With its rapid growth and continuous innovations, Arbitrum is firmly established as an essential part of the future of blockchain.

“The next phase of Arbitrum’s development includes additional improvements to the developer experience, such as Arbitrum Stylus, a custom programming environment, and Arbitrum Bold, an enhanced fraud proofing technology,” it states.