Recently, Ethereum (ETH) reserves on Layer 2 (L2) networks have significantly decreased, with an overall drop of about 25%. Optimism has seen a staggering 54% decline since March, while Arbitrum and Base have dropped by 17% and 14%, respectively. The DeFi Report highlights this trend, particularly since early 2025, as major L2 networks experience substantial ETH withdrawals. The falling prices of native L2 tokens, such as OP and ARB, have diminished investor interest, leading many to migrate to other platforms. Concurrently, some ETH is returning to the mainnet, perceived as a safer option. Staking and long-term holding addresses have surged, indicating a shift towards value preservation. Accumulation Addresses now hold a record 22.8 million ETH, with over 500,000 ETH staked in June alone. This trend marks a reversal from 2024, as the mainnet gains traction post the successful Pectra upgrade. For L2s to regain trust, they must enhance liquidity and implement transparent incentives. Read more AI-generated news on: https://app.chaingpt.org/news

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