Layer 2 networks hit $13B TVL, but challenges still remain

According to market specialists, this trend of higher interest in layer 2s is likely to continue, although some difficulties remain, specifically in the realms of user experience and security.Ethereum layer 2 TVL. Today, the overall market cap of cryptocurrencies is a more modest $1.4 trillion, according to CoinMarketCap, yet the TVL of layer Twos is greater than ever.In a discussion with Cointelegraph, Metis CEO Elena Sinelnikova proposed a theory for why layer Twos are growing in spite of the continuing bear market.”According to Sinelkova, another factor that layer 2 networks have actually prospered in the bear market is due to the fact that of the successful marketing efforts of their development groups, which has led to high user activity and, therefore, high yields. The Metis CEO declared that her group is working on a “hybrid” layer 2 network that will integrate the finest of both worlds, providing users the choice to withdraw using either an instant ZK prover or a seven-day optimistic process.Kelsey McGuire, chief growth officer for layer 1 network Shardeum, informed Cointelegraph that layer 2s deal with another serious difficulty that is often overlooked: centralization.”McGuire anticipates competitors from layer 2s to spur enhancements to layer Ones, eventually leading to greater throughput for the foundational layers themselves.

Today, the total market cap of cryptocurrencies is a more modest $1.4 trillion, according to CoinMarketCap, yet the TVL of layer 2s is higher than ever.In a discussion with Cointelegraph, Metis CEO Elena Sinelnikova proposed a theory for why layer 2s are growing in spite of the continuing bear market. The Metis CEO declared that her group is working on a “hybrid” layer 2 network that will combine the best of both worlds, offering users the choice to withdraw using either an immediate ZK prover or a seven-day optimistic process.Kelsey McGuire, primary growth officer for layer 1 network Shardeum, told Cointelegraph that layer 2s face another serious challenge that is frequently ignored: centralization.”McGuire anticipates competition from layer Twos to spur improvements to layer 1s, eventually leading to higher throughput for the fundamental layers themselves.