The total value locked (TVL) in Ethereum Layer 2 networks has soared to a record $47.45 billion, marking a significant milestone for the scalability solutions of the Ethereum blockchain. According to L2BEAT, this new high encompasses the value of all canonically bridged, externally bridged, and natively minted tokens across these networks.

Arbitrum One currently leads the pack with a TVL of $19.3 billion, followed by OP Mainnet and Base with $7.88 billion and $6.94 billion, respectively. Other networks such as Blast, Mantle, Linea, and Starknet also report TVLs exceeding $1 billion. Over the past week, the total value locked across all Layer 2 solutions has increased by 17.39%.

This surge in TVL aligns with the positive momentum generated by the U.S. Securities and Exchange Commission’s (SEC) recent approval of spot Ethereum exchange-traded funds (ETFs). On May 23, the SEC green-lighted Ethereum ETF applications from eight issuers, including major financial players like BlackRock, Fidelity, and Grayscale. This follows the earlier approval of spot Bitcoin ETFs in January. These issuers are in the process of completing S-1 forms, with the market anticipating launches in the coming weeks.

Furthermore, Ethereum’s development community has slated the next major network upgrade, dubbed Pectra, for the first quarter of 2025. This decision allows developers to steer clear of critical debugging periods during Devcon and the holiday season, ensuring ample time for thorough testing and a smooth transition. The Pectra upgrade will bring significant improvements to the network, including the integration of PeerDAS in the consensus client to enhance data availability and several critical enhancements in the execution client, such as the introduction of EOF, replacement of EIP3074 with EIP7702, and patching of EIP2935.

These developments underscore a robust period of growth and innovation for Ethereum, as it continues to expand its infrastructure and functionality ahead of significant network upgrades, reflecting the increasing trust and investment in its Layer 2 solutions.