Layer-2 Chains Fail to Turn Cheap Blockspace into Revenue

The layer-2 chains that promised cheap transactions and attracted users are struggling to turn those pennies into revenue. DefiLlama's data shows that 23 layer-2 networks combined earned only $25,151 in network fees over the last 24 hours. This is a far cry from the promise of low costs and high volume.

Starknet led the pack with $8,571 in chain fees, while Abstract and Celo followed at about $3,400 and $3,100 respectively. However, what's striking is that these chains have large TVLs, yet earn barely enough to cover their costs. Ink, for instance, holds $207.89 million in TVL but earned just $631, while Mantle has $105.41 million and earned $372.

Base and Arbitrum are the clear winners here, with Base earning $114,838 and Arbitrum taking in $26,116. The comparison is stark - these two chains have combined earnings that exceed the entire list of 23 layer-2 networks. This highlights the struggle many of these networks face in generating revenue from their cheap blockspace.

The shutdown of Blast this week serves as a warning to other networks struggling to stay afloat. With ongoing costs exceeding revenue, it's clear that low fees and high volume are not enough to sustain a network.