Ethereum's Layer-2 Experiences Growth Spurts Amid Market Struggles

By: Isha Das

While major cryptocurrencies are facing market struggles, Ethereum's Layer-2 networks have been experiencing significant growth. Amid trading and gaming surges, Ethereum Layer-2 solution, Base, backed by Coinbase, and hosting a high volume of trading activities, prominently stood out in layer-2 fees. Although high fees were reported due to increased trading, it has been addressed with the network's congestion.

Following Ethereum's Dencun upgrade, many Layer-2 protocols, including Base and Arbitrum, have garnered heightened attention. Notably, Ethereum's price soared above 10%, and the Dencun upgrade has been playing a huge role in triggering a boost in Ethereum's Layer-2 activities by reducing transaction costs and enhancing operations efficiency.

Base's recent Atomic arbitrage bots' activity triggered a surge in bot trading, driving daily Ethereum Layer-2 trading volume to a new high of $374 Million. Conversely, ARB token saw a price drop due to ongoing investor sell-offs post unlocking, but analysts remain optimistic expecting an upswing. .