59 Layer 2 Networks Have Scaled Transactions In The Ethereum Ecosystem Since early 2021, more than 20 Layer 2 (L2)* networks have launched, enabling Ethereum to scale average daily transactions at lower fees by 4x. Despite their early success, most L2 networks are controlled centrally. The proliferation of L2s has complicated user and developer experiences. Average Daily Transactions Ethereum Mainnet Layer 2 Neworks S 5 T C ) A R ns 4 T io N l O il C (M T nt 3 R u A o SM C n 2 io act ans r 1 T 0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 2019 2020 2021 2022 2023 *L2 networks aggregate transactions and settle the resulting state changes to a base-layer smart contract network like Ethereum, typically at higher throughput and lower cost compared to the base network. L2 transaction count is based on data available on Artemis Dashboard: Arbitrum, Base, Linea, Optimism, Polygon zkEVM, Scroll, StarkNet, zkSync Era, Zora Network. Chart data end 12/31/23. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, which are available upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.