WS #15768
Ethereum Layer 2 Total Value Locked (TVL) has collapsed to $5 billion, marking a two-year low and wiping out 31% of its peak from March. This decline is driven by drying institutional inflows and intensifying liquidity risks, with Optimistic rollups maintaining dominance while ZKsync suffers massive outflows. The downturn highlights a structural liquidity squeeze in the crypto ecosystem that contrasts with Bitcoin's relative stability.
Crypto Liquidity Crunch
Ethereum Layer 2 Total Value Locked (TVL) has collapsed to $5 billion, marking a two-year low and wiping out 31% of its peak from March. This decline is driven by drying institutional inflows and intensifying liquidity risks, with Optimistic rollups maintaining dominance while ZKsync suffers massive outflows. The downturn highlights a structural liquidity squeeze in the crypto ecosystem that contrasts with Bitcoin's relative stability.