Definition ∞ L2 transaction volume refers to the aggregate number of operations processed on Layer 2 scaling solutions, which operate atop a main blockchain. These off-chain protocols, such as rollups and sidechains, bundle many transactions together for efficient processing. They then settle the aggregated results on the base layer, significantly reducing congestion and costs on the primary network. This metric indicates the efficiency of scaling solutions.
Context ∞ L2 transaction volume is a key indicator of a blockchain ecosystem’s scalability and user adoption. News often highlights its rapid growth, particularly following significant network upgrades designed to support Layer 2 infrastructure. A critical future development involves the continued expansion of L2 transaction volume as these solutions mature, further offloading traffic from Layer 1 networks and enabling broader decentralized application usage.
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