Ethereum: As L2 users rise to 3M, will it impact the network?

• The Ethereum L2 users crossed 3 million for the second time in history.
• L2 and Ethereum TVL also hit record highs.

The expansion of Ethereum [ETH] Layer 2 (L2) has been evident in recent months, with the user base reaching a new peak. Alongside the increase in users, the Total Value Locked (TVL) has also experienced growth.

However, is there a discernible impact on Ethereum fees due to this surge in users and TVL?

Ethereum L2 user base hits record-high

Analysis of Growthepie data showed a notable growth in the Ethereum Layer 2 (L2) user base in recent months, with a significant milestone reached recently.

Over the past seven days, the number of L2 users surged to a historic high, exceeding 3.1 million. This milestone marked the first time in the year that the weekly user count surpassed 3 million and set a new record of surpassing 3.1 million.

The previous record, set in December, had the user count crossing the 3 million mark. The growth in the user base coincided with an increase in another key L2 metric.

L2 TVL surges alongside user base

Analysis of L2 TVL data on L2 Beats showed a consistent increase over the past few months, reaching a recent peak. The data showed that the TVL achieved its highest point in history, reaching the $29 billion mark on 26th February and steadily growing since then.

At the time of this writing, the TVL was around $29.46 billion, reflecting a growth of over 4% in the last seven days. The analysis further highlights Arbitrum as the L2 network with the highest TVL, exceeding $13 billion.

Additionally, Ethereum’s overall TVL has shown substantial growth in recent weeks. According to DefiLlama data, the TVL has crossed the $50 billion mark for the first time in over a year.

At the time of this writing, the Ethereum TVL was $51.163 billion, with an ongoing uptrend.

Source: DefiLlama

Realistic or not, here’s ETH’s market cap in BTC terms

Ethereum fee sees slight rise

Analysis of Ethereum fees on Crypto Fees showed a slight increase between 19th February and 28th February. The chart showed that on 19th February, the network fee was about $12 million.

However, at the time of this writing, the fee has risen to over $15 million. While not reaching the highest fee observed recently, over $20 million on 9th February, the current fee represented an increase.