Layer 2s on the Rise

In the thrilling world of cryptocurrencies, Ethereum layer 2s have taken center stage. According to the latest report from Alchemy, the first quarter of 2023 saw these networks, including popular contenders like Optimism, Arbitrum, and Polygon, gain rapid traction. An impressive 635,000 Ethereum users bridged their crypto assets to these platforms, marking a staggering 44% increase compared to the previous quarter. Year over year, this is an astonishing 518% uptick from Q1 2022, when only 103,000 users participated in bridging transactions.

Airdrops: The Cherry on Top

What fueled this rapid growth, you ask? Alchemy suggests that the successful airdrops by Optimism and Arbitrum during the same period played a significant role in driving user engagement. Airdrops seem to have become the glittery lure, entices users back into the crypto waters after a turbulent 2022.

Developer Enthusiasm Remains Strong

Beyond the user engagement, the report also dances around a noteworthy trend among developers on layer 2s. Although there was a 30% decrease in the deployment of smart contracts in comparison with Q4 2022, the numbers still reflected an impressive 160% increase when looked at from the lens of Q1 2022. Clearly, developers are shaking off the winter blues and are busier than ever!

Ethereum Ecosystem sees a Boost

The excitement isn’t just limited to layer 2s; the entire Ethereum ecosystem is buzzing with activity. Ethereum SDKs like Ethers.js, Web3.js, Hardhat, and Web3.py boasted a collective download count of 1.3 million in Q1 2022, climbing to 1.9 million for Q1 2023—a healthy 8% increase. The MetaMask SDK, a tool crucial for connecting apps to the MetaMask wallet, saw a consistent monthly increase throughout the quarter as well.

Why Layer 2s Matter

Layer 2s are hailed as a beacon of hope for addressing Ethereum’s long-standing scalability issues, which have often led to exorbitant gas fees since 2020. While many are looking at sharding as another potential solution, layer 2s are currently leading the charge in making transactions more efficient and affordable.

This article was updated on April 18 to clarify that the growth of bridging users was indeed 518%, not the volume of assets bridged.