BlockBeats News, July 29th, the total value locked (TVL) in the Ethereum Layer 2 ecosystem has dropped to around $5 billion, hitting the lowest level since 2023, essentially erasing the capital accumulation during the rapid growth of the L2 ecosystem in 2024.

Data shows that the current TVL of the three major networks, Optimism, zkSync, and Arbitrum, is around $4.8 billion, accounting for 96% of the entire L2 ecosystem.

The report points out that the cooling down of the L2 ecosystem is happening in sync with the challenges facing Ethereum as a whole. Since the beginning of this year, several senior executives have left the Ethereum Foundation, leading to personnel changes. Meanwhile, as traditional financial institutions explore blockchain infrastructure, they are gradually looking beyond Ethereum to alternative solutions.

For example, DTCC is pushing for the tokenization of government bonds based on a multi-chain environment, and JPMorgan Chase has expanded JPM Coin to multiple public blockchains. However, stablecoins remain a key support in the Ethereum ecosystem, with USDC and USDT currently settling mainly through Ethereum and its L2 networks, allowing Ethereum to continue playing a crucial role as a bridge for traditional finance to enter the crypto market.