The newest layer two (L2) blockchains are being adopted at record speeds, with some reaching one million users within weeks rather than months, according to a study by Coingecko.
L2 Blockchains Hit One Million Users Faster Than Ever, Coingecko Study Shows
A layer two (L2) blockchain runs alongside an existing blockchain like Ethereum to improve transaction speeds and reduce fees. The Ethereum network now has several popular L2 solutions, but they haven’t always seen rapid adoption. Coingecko recently published a report on the subject which highlights the growth of today’s top L2s.
Arbitrum, an ETH-based L2, took 303 days to reach one million unique addresses after its mainnet launch on August 31, 2021, according to Coingecko’s contributor Shaun Paul Lee. The L2 solution Optimism, launched in January 2022, hit the same milestone in 191 days.
Zksync, which launched its mainnet on March 25, 2023, needed 71 days to reach one million addresses. But Base, which launched its mainnet on August 9, 2023, gained over a million addresses in just 11 days.
The study notes that Base benefited from a wave of popularity around new meme coins launching on the new network. Base is an Ethereum L2 blockchain network developed by the San Francisco-based crypto firm Coinbase.
Lee’s research further shows L2s without native tokens onboard users even faster. Both Base and Zksync reached a million users quickly without having launched tokens yet. The study suggests users are hoping for airdrops of governance tokens as rewards for early adoption.
Meanwhile, L2s like Arbitrum and Optimism have already distributed tokens through airdrops. Polygon zk-EVM, which has the MATIC token, has seen slower growth compared to Base and Zksync.
Despite rapid growth from L2s, Lee’s research notes that Ethereum still dominates with over 241 million unique addresses as of August 20, 2023. However, the researcher opines that new solutions like Base are rapidly gaining trust and providing meaningful scaling benefits to Ethereum.
What do you think about Coingecko’s report on L2 networks and their growth? Share your thoughts and opinions about this subject in the comments section below.