The world of cryptocurrency is always evolving, and currently at the very top are Ethereum Layer 2 networks. In simple terms, they facilitate Ethereum so that it's faster and cheaper to use. Not so long ago, they hit a new record by processing over 12 million transactions in one day. That is a big deal because it means more people are using these networks than ever before.
One of the stars in this story is Base, a new network created by Coinbase.
It has been very popular, with millions using it every single day. This success is really pushing other similar networks like Arbitrum and Optimism to work even harder. With fierce competition at its core, this is pretty good for users, it rightly translates into better service and lower charges.
The really interesting thing is how these Layer 2 networks really seem to be revolutionizing things for stablecoins. Stablecoins are digital coins that aim to maintain a steady value usually tied to some real-world currency, like the US dollar. Currently, there are more stablecoins on Ethereum's layer 2 networks than on some other rather well-known blockchains. This shift shows people are trusting these networks with their money.
It's not just about the numbers, it's advancing technology.
New ways are being found through these networks to process more transactions without slowing or charging high fees. This is critical because more and more people could use cryptocurrency for everyday things and not just investment purposes.
The progress has been good so far, but there still would be a long way to go. When one places these Layer 2 networks in value compared to other blockchains, it is very low. This alone shows that investors haven't recognized the potential behind it yet. As awareness and adoption join the trend, material price appreciation could happen.
Layer 2 network success is going to change things for how we view the future of blockchain technology.
They make sure that fast and cheap transactions are accomplished at scale. That can open a whole new avenue for applying cryptocurrency in everyday life, from buying coffee to running complex financial systems.
With these networks growing and continually getting better, they may attract more and more developers to build new apps and services, hence creating an explosion of innovative ways in which cryptocurrency can be used.
This rise of Ethereum's Layer 2 networks is much more than a technological achievement; it is an indication that cryptocurrency is maturing.