The total value locked in the second layer of Ethereum hits an all-time high

The total value locked (TVL) of the Ethereum second-layer (L2) network has soared to a new peak as gas fees continue to steadily rise to drive further adoption.

Layer 2 analytics platform L2beat reports that the total value locked in various Layer 2 protocols and networks has reached an all-time high of $5.64 billion.

L2 scaling solutions, which offer higher transaction throughput and lower transaction fees, saw a surge in adoption in November, which also saw the highest average gas fees in the history of the Ethereum network.

The total value locked in the second layer of Ethereum hits an all-time high

— Evan Van Ness (@evan_van_ness) November 22, 2021

Arbitrum commands the vast majority of the L2 market, locking in $2.67 billion, or about 45% of the total.

The dYdX decentralized derivatives exchange comes in second with a TVL of $975 million and Loopring L2 DEX is third with $580 million, however its own LRC token accounts for most of its locked value.

Tier 2 TVL has more than doubled since early October, surging 110% from $2.68 billion to current levels.

According to Bitinfocharts, the average transaction fee on Ethereum is currently around $40. They surged to their second highest ever on Nov. 9, around $65, and are up 700% over the past four months.

Gas prices vary depending on the operation, currently a simple ERC-20 token transfer can cost around $45, and a more complex smart contract interaction or Uniswap swap can cost $140, according to Etherscan.

Registering a domain name on Ethereum Naming Service costs hundreds of dollars in gas fees even though the actual domain name only costs a few bucks per year.

Multi-chain compatible DeFi platforms have seen record inflows since October as investors and developers try to avoid the Ethereum network due to soaring gas fees.