Ethereum Price Remains Stable Amid Decline in Layer 2 Value Locked

Ethereum's price remains relatively calm at $1,920, but its underlying picture looks complicated. The total value locked (TVL) across Ethereum Layer 2 networks has dropped to around $5 billion, wiping out much of the 2024 expansion and returning to levels last seen in 2023.

This decline raises questions about whether L2s will drive Ethereum's next growth phase as expected. The Robinhood Chain story captures this tension. In its first two weeks, it bridged around $141 million in ETH and briefly overtook Ethereum L1 and Base in 24-hour DEX volume, reaching about $877.6 million.

However, the network returned only a small amount to Ethereum during its first week, sparking debate over how much value L2s actually send back. Meanwhile, Optimism, Base, and Arbitrum still account for around 96% of the remaining Layer 2 TVL at $4.8 billion.

Despite this, the steady decline in total TVL remains difficult to ignore. The Ethereum Foundation has lost several senior leaders this year, while institutions like DTCC and JPMorgan continue expanding tokenization efforts across multiple blockchains instead of focusing solely on Ethereum.