- Arbitrum accounted for over 50% of the total ETH trading volume across the top optimistic rollups.
- Arbitrum had the highest TVL of all ETH scaling solutions.
Despite the emergence of some Ethereum [ETH] Arbitrum has expanded its solution over the past year. [ARB] Most of the landscape advantages remain intact.
Arbitrum scales Ethereum and explains how.
Layer 2 (L2) blockchains accounted for more than 50% of ETH’s total trading volume across the top optimistic rollups, including Optimism, according to on-chain analytics firm IntoTheBlock. [OP] And the base.
Source: Into the Block
However, it should be noted that in the broader L2 market, Arbitrum has lost transactional dominance to zk rollup, zkSync Era.
According to AMBCrypto research, L2 beat According to the data, Arbitrum recorded more than 24 million cumulative transactions in the past month. This pales in comparison to zkSync Era’s 30-day tally of 41.3 million.
The large difference in the number of transactions is due to the difference in fees between the two scaling solutions. AMBCrypto noticed L2 fee This means that while users had to pay $0.14 on Arbitrum to send ETH, they could perform the same task at a 64% discount on zkSync Era.
But supporters of Arbitrum in particular, and L2 in general, are excited about the upcoming Dencun upgrade. This significant technology change was expected to reduce L2 transaction fees by approximately 10x.
Thanks to the upcoming Ethereum Dancun upgrade, L2 transaction fees are expected to drop by a factor of 10 from the current average of $0.23. pic.twitter.com/9GuLgxky08
— Into the Block (@intotheblock) February 10, 2024
Arbitrum outperforms the competition in DeFi
Although Arbitrum lagged behind zkSync Era in network traffic, the former was still the decentralized finance (DeFi) leader in the L2 ecosystem.
According to analysis of Artemis data by AMBCrypto, there is a total of more than $2.7 billion locked in Arbitrum as of this writing. This was head and shoulders above the competition.
Understand this – the TVL of the next three scaling solutions in the list was still less than the Arbitrum aggregate.
Source: Artemis
Another key aspect of Arbitrum’s DeFi game was the performance of decentralized exchanges (DEXs). As you can see from the graph above, Arbitrum has solidified his position as a top L2 with his DEX volume.
In fact, the Arbitrum DEX facilitated more than $1.7 billion worth of trades last week. In contrast, Base and zkSync Era’s DEX could not even exceed $300 million.
Realistic or not, ARB’s market capitalization in BTC terms is as follows:
ARB up 8.5% for the week
As of this writing, the native token ARB is up 8.5% weekly and trading in the green. coin market cap.
The spike in ARB values could simply be due to sentiment. As is well known, ARB derives no value from Arbitrum’s on-chain activity and only serves as a governance token.
