L2 Adoption

Definition ∞ L2 adoption refers to the increasing use of Layer 2 scaling solutions built atop existing blockchain networks, such as Ethereum. These solutions aim to improve transaction speed and reduce costs by processing transactions off the main chain. Greater adoption indicates a growing acceptance and reliance on these technologies. This is crucial for enhancing the scalability of decentralized applications.
Context ∞ L2 adoption is a key indicator of a blockchain network’s ability to handle increased user demand and transaction volume. The ongoing development and deployment of various Layer 2 protocols address critical scalability challenges. News concerning L2 adoption often highlights advancements in network efficiency and user experience.