Ethereum Layer 2 TVL Drops Amid Methodology Changes

Ethereum Layer 2s have seen a drop in total value locked (TVL), mainly due to revised accounting methods that remove non-circulating tokens. According to Pluang, this change has led to a headline dip in TVL figures. However, major Layer 2s like Base and Arbitrum One still hold significant value, with around $11.7B and $10.3B respectively.

The liquidity fragmentation across multiple appchains and Layer 3s means that capital is more spread out, impacting TVL snapshots but not indicating a collapse. Investors should track multiple metrics beyond TVL to understand true liquidity trends, including DEX volume and stablecoin balances.