Since June 2025, the number of Ethereum Layer 2 solutions with TVS over $100,000 has dropped from 108 to 100, despite the launch of new protocols. This was noted by researchers at growthepie.
Source: growthepie.In the past 10 months, 21 projects have shut down, including Katana, Lasernet, Pentagon Chain, Pepe Unchained, Arena-Z, OEV Network, Term Structure, Aleph Zero EVM, Edgeless, LaChain, SnaxChain, SuperLumio, Haust Network, Capx, Hala, Mega ETH, Form, ADI Chain, Nillion, and Immutable X.
“There is a consolidation of Layer 2 networks. […] It’s important to note that while new L2s are being deployed, we are witnessing a significant reduction in the number of older protocols,” analysts remarked.
Simultaneously, there is a slowdown in the Ethereum application sector, with the number of applications decreasing from a peak of 639 last year to 490 currently.
Source: X.Despite this negative trend, activity in the dapps sector has increased as market leaders strengthen their positions, according to growthepie. Experts believe that consolidation is a normal phenomenon and that the current wave is “the first of many.”
Overall, Ethereum metrics show a recovery in on-chain activity following a decline last autumn. On March 18, the daily number of transactions on the blockchain reached 2.6 million.
Source: etherscan.io.The number of unique wallets on the network has nearly reached 400 million.
Source: etherscan.io.In February, Ethereum founder Vitalik Buterin stated that the original concept of L2 has become outdated and proposed a new model for the ecosystem's development.
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