BlockBeats news, July 29, the total value locked (TVL) in the Ethereum Layer2 ecosystem has fallen back to approximately $5 billion, dropping to its lowest level since 2023, effectively erasing the capital scale accumulated during the rapid growth of the L2 ecosystem in 2024.

Data shows that the combined TVL of the three major networks, Optimism, Base, and Arbitrum, is currently about $4.8 billion, accounting for 96% of the entire L2 ecosystem.

The report points out that the cooling of the L2 ecosystem is occurring in tandem with the overall challenges facing Ethereum. Since the beginning of this year, several senior executives at the Ethereum Foundation have resigned, and personnel adjustments have been made. At the same time, as traditional financial institutions explore blockchain infrastructure, they are increasingly turning their attention to alternatives outside of Ethereum.

For example, the DTCC is promoting the tokenization of Treasury bonds based on a multi-chain environment, and JPMorgan Chase has also expanded JPM Coin to multiple Public Chains. However, Stablecoins remain a vital pillar of the Ethereum ecosystem. Currently, USDC and USDT are still primarily settled through Ethereum and its Layer2 networks, allowing Ethereum to continue playing the role of an important bridge for traditional finance to enter the crypto market.