Last week, the total value staked in the ETHEREUM LAYER 2.0 solution increased by more than 20%, reaching a peak of $4.39 billion.
Projects also continue to grow. For example, Arbitrum increased by 20%, Loopring by 84%, and Optimism by 98%. Both Arbitrum and Optimism use Optimistic Rollup technology, a solution for scaling the Ethereum network.
The Optimistic Rollups solution allows users to run smart contracts on the Ethereum Mainnet layer. While running, it is also secured by the Mainnet network.
As users of the Layer 2 solution, their money is kept in a smart contract on Ethereum. During this time, users’ transactions are recorded in an off-chain format. They are later sent to an aggregator, which creates new smart contracts on the Ethereum Mainnet.
The growth of the Ethereum Layer 2.0 solution comes after the price of ETH reached new all-time highs, and higher fees on the network.
Fees on the Ethereum Mainnet have increased to 100 Gwei this week. This means that a single transaction on the Ethereum network costs around $15.
Ethereum is currently trading at $4,504.32 and has declined a bit in the last 24 hours.