Hello, crypto enthusiasts! 👋 Today we will discuss an interesting, yet somewhat concerning trend: the reserves of Ethereum (ETH) on Layer 2 (L2) networks are noticeably decreasing. Over the past few months, the total ETH balance on L2 has dropped by approximately 25%.
In particular, Optimism has lost 54% of ETH since March, while Arbitrum and Base have lost 17% and 14% respectively.
Reasons for the outflow of ETH from L2
According to The DeFi Report, the main reason is the decline in prices of the native tokens of these L2 networks. The OP token from Optimism has fallen by 38% over 90 days, while ARB from Arbitrum has decreased by 21%.
Investors, seeing this, are returning ETH to the main Ethereum network, which is considered safer and more reliable. This is confirmed by the fact that the volume of ETH in staking and the number of long-term storage addresses have reached new highs. People are choosing saving strategies over active trading on L2.
Moreover, large wallets are redistributing their assets, and the number of coins in accumulation addresses (those without sales history) has reached a record 22.8 million ETH. CryptoQuant analysts note: "In just the first half of June, over 500,000 ETH were locked, bringing the total amount to a new record of over 35 million ETH." This indicates a growing trust in Ethereum and a decrease in liquid supply.
Impact on the Ethereum ecosystem
Previously, L2 solutions were considered a threat to the main network, attracting users with low fees. However, there is now a reverse trend: activity on the main network is increasing.
This could strengthen Ethereum's position, especially after the successful Pectra upgrade, which improved performance. The increase in ETH staking (nearly 29% of the total circulating coins) also indicates long-term trust in Ethereum.
If Optimism and Base cannot quickly adapt, they risk losing their competitive edge, while the main Ethereum network will further solidify its leadership position. L2 networks must improve liquidity and reduce dependence on volatile tokens to regain investor trust.
What do you think about this trend? Will the main Ethereum network become even stronger, or will L2 find ways to regain their popularity? Share your thoughts in the comments! 👇$ETH
