Ethereum Reserves Drop 25% on Layer 2 Networks
The post Ethereum Reserves Drop 25% on Layer 2 Networks appeared on BitcoinEthereumNews.com. In recent months, Ethereum (ETH) reserves on Layer 2 (L2) networks have plummeted, with the overall ETH balance visiting roughly 25%. ETH on Optimism has actually fallen by as much as 54% considering that March, while Arbitrum and Base have seen decreases of 17% and 14%, respectively.
What is driving this decline? The chart from The DeFi Report clearly highlights this pattern, particularly since early 2025, when significant L2 networks like Optimism and Base have seen substantial ETH withdrawals. According to analyses, the weakening rates of native Ethereum L2 tokens are a crucial aspect. ETH reserves on L2 networks have dropped. Tokens such as OP from Optimism have dropped more than 38% over the previous 90 days. ARB from Arbitrum has decreased by 21%. This decline has decreased investor appeal, prompting them to shift to other platforms.
At the same time, a part of ETH is returning to the Ethereum mainnet, which is considered much safer due to its high security. In addition, the amount of ETH being staked and the number of long-term holding addresses have reached new highs, showing that investors prioritize value-preservation methods over trading on Ethereum L2. Another potential factor is the movement of ETH from Accumulation Addresses. Data from CryptoQuant indicates that large wallets are reallocating assets, increasing selling pressure on L2. Accumulation Addresses (holders without any history of selling) have reached an all-time high, now holding 22.8 million ETH.
Many public companies also include ETH as a reserve asset. Total worth of ETH staked. Source: CryptoQuant ‘In just the first half of June, more than 500,000 ETH have been staked, pushing the total locked total up to a new all-time high of over 35 million ETH. This growth signals increasing confidence and an ongoing drop in liquid supply,’ a CryptoQuant analyst stated…
In recent months, Ethereum (ETH) reserves on Layer 2 (L2) networks have plunged, with the overall ETH balance dropping by approximately 25%. Additionally, the amount of ETH being staked and the number of long-term holding addresses have reached new highs, showing that investors focus on value-preservation methods over trading on Ethereum L2. ‘In just the first half of June, more than 500,000 ETH have been staked, pushing the total locked amount to a new all-time high of over 35 million ETH.
In recent months, Ethereum (ETH) reserves on Layer 2 (L2) networks have actually dropped, with the total ETH balance dropping by roughly 25%. The chart from The DeFi Report clearly shows this trend, particularly because early 2025, when significant L2 networks like Optimism and Base have actually experienced considerable ETH withdrawals. Additionally, the amount of ETH being staked and the number of long-term holding addresses have reached new highs, suggesting that investors prioritize value-preservation techniques over trading on Ethereum L2. ‘In just the first half of June, more than 500,000 ETH have been staked, pushing the total locked amount to a new all-time high of over 35 million ETH. ETH’s departure from L2s may last up until this month’s effective Pectra upgrade or strategy changes amidst market volatility.
