This Ethereum L2 rose by 1551%, outperformed Loopring, dYdX, Optimism

Ethereum has seen a myriad of Layer-2 solutions developing over time, with the fight to gain prominence never-ending. However, the emergence of Boba Network has challenged some longstanding L2 solutions to place itself in the #2 spot.

The new Ethereum L2 champ?

Layer-2 solutions have seen some solid domination from Arbitrum, but the second place has been a matter of competition for a while now. 

It was once Optimism’s spot but after October, it was controlled by dYdX. And now, its place has been taken by the Boba Network.

L2 rankings | Source: L2beat

Boba Network’s TVL has been dragging in the $40 million range for months now. However, that changed this month as in the last 10 days, its TVL went from $87 million to $1.4 billion. Simply put, the project has hiked by 1,551% over the aforementioned time period.

Boba Network TVL | Source: L2beat

The reason for this strong growth is that protocols began to be built and developed on Boba. Specifically – OolongSwap, the first AMM DEX on Boba Network.

Skyrocketing TVL

The DEX’s TVL was $9 million 12 days ago and today, it is at $477 million – Accounting for a 5200% hike.

OolongSwap TVL | Source: DeFi Llama – AMBCrypto

With over 5000 users in all, the network has over 95,977.21 ETH worth almost $397 million on it.

Although the L2 has only 5 protocols on it, it has managed to outperform the likes of Optimism which has 9 protocols active on the network.

The rise of OolongSwap has contributed significantly to Ethereum’s overall TVL this week. Especially since while DEXes are the second biggest contributors, their performance was terrible the week before, falling by 6.51%.

This week, however, saw the same hike up by 4.08%.

Ethereum TVL distribution | Source: Coin98

The network also launched its own token on 22 November. It was trading at $7.5 at its peak when it rose by 80% in 4 days before yesterday’s corrections hit and it fell down by 24%. It was trading at $6.05, at the time of this report.

BOBA price action | Source: TradingView – AMBCrypto

Boba Network is consistently growing. That is a good sign as it even crossed the 100k transactions milestone a couple of days ago. But, with Ethereum, the high gas fees are an ever concerning issue that could affect Boba’s growth going forward.