Layer 2 platforms recorded over 40% growth in social engagement, reflecting increased community attention and developer activity.
SUSHI, NAVX, TURBOS, CPOOL, and ARB led weekly TVL gains, each exceeding 18% amid rising DeFi adoption on Layer 2 solutions.
DeFi and Layer 2 ecosystems are increasingly intertwined, with scalability solutions driving both liquidity growth and network activity.
Layer 2 (L2) and decentralized finance (DeFi) ecosystems experienced a vibrant increase this week, with five top projects experiencing substantial Total Value Locked (TVL) increases. According to data available, SUSHI, NAVX, TURBOS, CPOOL, and ARB all achieved weekly TVL increases of more than 18% that represent heightened market interest.
This growth reflects a broader increase in Layer 2 blockchain usage, with social engagement for top L2 projects increasing by over 40% during the same period. The shift is noted by observers as a sign of rising user adoption within chains that prioritize scalability, where users want to pay less in fees and get faster transactions amidst ongoing Layer 1 congestion.
Sushi(SUSHI): Remarkable TVL Rebound Amid Protocol Adjustments
SUSHI, the native token of SushiSwap, posted an exceptional TVL growth, surpassing 18% over the past week. This recovery follows recent adjustments in liquidity mining incentives and expanded Layer 2 deployments. SushiSwap’s ecosystem benefited from an uptick in DeFi activity as users shifted to platforms with optimized fee structures.
Analysts note that the protocol’s multichain strategy, including Arbitrum and Optimism integrations, supported the liquidity increase. However, questions remain over the protocol’s long-term revenue generation, despite the recent surge in user engagement and liquidity provisioning.
NAVI Protocol(NAVX): Groundbreaking Surge Driven by Expanding DeFi Use Cases
NAVX, a lesser-known DeFi protocol, took everyone by surprise with a record-breaking over 18% TVL growth rate through new offerings and partnerships. NAVX's recent ecosystem expansion comprises lending facilities and cross-chain bridges that have boosted capital inflows into its platform.
Industry observers pointed out NAVX's record-breaking social mentions, which reflect growing awareness despite its low market presence. While its liquidity remains tiny compared to market leaders, NAVX's innovation-focused roadmap gives it potential as a contender in the Layer 2 DeFi market.
Turbos Finance(TURBOS): Phenomenal Growth Reflects High-Risk, High-Reward Trading Activity
The TVL growth in TURBOS was extraordinary, supported by a record inflow into its leveraged trading products and perpetual swaps. Its spike is a sign of the wider shift toward high-yield, high-action DeFi services, but analysts warn that the growth in such services is usually accompanied by increased volatility.
The heightened community interest was coupled with the product enhancement, especially on Layer 2 projects, as TURBOS lowered trading costs. In spite of the momentum, the project also has issues with user retention and liquidity depth in competitive decentralized derivatives markets.
Clearpool(CPOOL): Superior Growth on the Back of Cross-Chain Liquidity Expansion
CPOOL experienced superior weekly growth, supported by fresh cross-chain liquidity incentives and protocol upgrades. The project, focused on decentralized capital formation, expanded integrations with Layer 2 solutions, reducing costs for liquidity providers.
This technical progress drove a rise in TVL and increased user activity across secondary networks. Analysts point to the platform’s evolving governance model and diversified product suite as factors in its remarkable performance, though long-term adoption remains dependent on consistent liquidity inflows.
Arbitrum(ARB): Unmatched Layer 2 Ecosystem Leadership Drives TVL and Social Activity
ARB, the native token of the Arbitrum network, maintained its unmatched leadership in the Layer 2 sector. Its weekly TVL growth of over 18% reinforces its position as a top-tier scaling solution. Arbitrum’s expanding DeFi landscape, along with frequent developer activity, fueled social media buzz and heightened market interest. ARB’s traction continues to be supported by a growing roster of DeFi protocols deploying on its network, including recent yield farming and NFT integrations. However, competition from other Layer 2 platforms like Optimism and Base may pressure its market dominance in the coming quarters.
