Ethereum Layer 2 network Scroll TVL surges 1,500% days after launch

Ethereum Layer 2 network Scroll has experienced a surge in its total value locked (TVL) to $15 million. This comes days after its official launch on October 17, according to data by L2Beat. This rapid growth has sparked competition among networks that use Ethereum's capabilities through zero knowledge technology and Ethereum Virtual Machine (EVM) compatibility. 

Also Read: Base network's TVL surges 25% fueled by USDC reminting

TVL rises, decentralized exchanges dominate Scroll

DefiLlama showcases the dominance of decentralized exchanges (DEX) on the Scroll network. KyberSwap exchange, with a TVL of $3.80 million, has shown a positive 6% change in the last 24 hours.

Another DEX, Skydrome, boasted a TVL of $1.58 million on the network, followed by SyncSwap and iZiSwap.

Prior to its mainnet launch in October, Scroll initiated its testnet on Goerli in February. Scroll, as a rollup solution, contends with players like Polygon, by enhancing Ethereum's capabilities through zero knowledge technology and Ethereum Virtual Machine (EVM) compatibility. The technology makes it simpler for developers to migrate their applications.

On L2Beat, Scroll is ranked on the ninth spot by TVL while Polygon zkEVM is seventh with a TVL of $62 million. zkSync Era tops the zk rollup projects with over $400 million in value locked.

On Sunday, Scroll achieved 101,375 transactions Based on Scrollscan data, marking its highest transaction volume since the launch. The daily Transaction Per Second (TPS) has experienced a surge of 700%, currently standing at 1.17. Over the past 30 days, Scroll has recorded a transaction count of 577,000.

Scroll’s unique addresses increase

Scroll now boasts a total of over 84,500 unique addresses. Scrollscan showed that the highest addition was done on Wednesday, with 14,430 addresses. 

The surge reminds investors of Coinbase's Layer 2 network, BASE, which also witnessed a meteoric rise in TVL following its launch in August. The BASE network gained significant momentum in the following months, especially with the introduction of Friend.tech, a crypto application linked to social media.

In October, Base's growth was primarily fueled by the minting of native USDC, contributing a substantial 25% increase to its TVL. As of now, it holds the impressive third position on L2Beat with a TVL of $560 million.

However, Base also reported multiple scams in the form of rug pulls during the period. Projects like SwirlLend and Magnet Finance swindled millions in investor money, with an estimated 500 projects associated with fraud or money laundering scams. 

The surge in Scroll's TVL, coupled with its increasing transaction volume and unique addresses, signals an auspicious start for this Ethereum Layer 2 network. However, as with any emerging technology, its growth and sustainability in the long term will require monitoring, especially when zkEVM technology has shown promise.