Ethereum Layer 2 rollup solutions, specifically optimistic and zero-knowledge (ZK) rollups, have experienced a significant decline in user engagement, reaching a yearly low with just 34,920 unique depositors over the past week. This figure represents a 33% decrease from the previous week and stands in stark contrast to mid-April, when the number of unique depositors reached upwards of 250,000 in a single week.
This week’s numbers represent a nearly two-year low, underscoring a significant drop in user engagement with Ethereum rollup solutions. Several factors may contribute to this decline, including changing user preferences, stagnation in the growth of decentralized applications (dApps) within the ecosystem, and a lack of incentives for users to keep using these rollups after receiving airdrops from Arbitrum, Optimism, ZKSync, and Starknet over the past two years.
The recent decline in unique depositors has led to a corresponding drop in the total value locked (TVL) within Ethereum Layer 2 rollups. Near the beginning of June, rollups received 36,100 unique depositors for the week, marking the lowest figures since October 2022. At that time, the combined TVL of both optimistic and ZK rollups recorded an all-time high of $25.7 billion. Since then, their combined TVL has fallen by over 20%, now standing at just over $20.5 billion.
The decline in ZK rollups can be further explained by a recent surge in unique withdrawers. Over the past few weeks, ZK rollups saw over 20,000 unique withdrawers, with previous weeks peaking at 40,000 and 48,000, respectively.
Despite the recent decline in unique depositors and TVL, Layer 2 solutions have experienced an overall increase in TVL this year. TVL on Layer 2 chains has surged by 74.77% this year, climbing from $22.6 billion to $39.5 billion.
The recent drop in unique depositors and TVL within Ethereum Layer 2 rollup solutions underscores the cryptocurrency ecosystem’s ever-changing landscape. As user preferences and market conditions evolve, the long-term success of these solutions will hinge on their capacity to adapt and innovate.