Summary of Recent Developments in Ethereum and DeFi
Last month, Ethereum layer-2 wallet addresses on Uniswap’s decentralized exchange saw a significant increase, reaching a new all-time high. These addresses were trading on L2s like Arbitrum, Base, Optimism, Polygon, and ZKSync. Uniswap, the largest DEX on any blockchain, generated nearly $100 million in fees in June.
Growing Adoption of Ethereum Layer-2 Solutions
Ethereum’s layer-2 solutions have been instrumental in alleviating on-chain congestion and reducing transaction costs. Platforms like Base and Polygon offer cheaper gas fees than the Ethereum mainnet, with recent upgrades further improving cost-effectiveness. As a result, the number of Ethereum L2 addresses has been steadily increasing since February.
Challenges in Total Value Locked Across DeFi Chains
Despite the rise in Ethereum L2 addresses, total value locked (TVL) in DeFi ecosystems has experienced a decline in recent months. Market corrections and a general downturn in the altcoin sector have contributed to this trend, with TVL dropping by up to 25% across various DeFi chains, including Ethereum and its layer-2 solutions.
