Arbitrum Now Responsible for 62% of All Ethereum Transactions

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Arbi­trum, a layer‑2 rollup for Ethereum, has seen its net­work activ­i­ty spike to new heights as antic­i­pa­tion mounts for an airdrop.

The buzz has boost­ed the total val­ue of dig­i­tal assets locked on the net­work (TVL) by more than 13% over the past month. Arbitrum’s TVL is now $1.05 bil­lion, eclips­ing Ethereum rival Solana and even direct com­peti­tor Optimism.

Not to men­tion, trans­ac­tions have shot up more than 550% since the launch of its Nitro net­work upgrade in August, now rep­re­sent­ing 62% of the week­ly trans­ac­tions on Ethereum, research firm Del­phi Dig­i­tal report­ed ear­li­er this week. Before the surge, Arbi­trum han­dled just 9% of Ethereum activity.

That has coin­cid­ed with a spike in unique wal­let address­es, which topped out at over 1.66 mil­lion for the first time on Mon­day. It should be not­ed that fig­ure counts mul­ti­ple address­es owned by individuals.

“Much of the activ­i­ty is like­ly from spec­u­la­tors try­ing to boost their on-chain activ­i­ty in the hopes of receiv­ing a larg­er air­drop,” Del­phi said.

Arbi­trum hosts many of DeFi’s pop­u­lar decen­tral­ized appli­ca­tions includ­ing exchange liq­uid­i­ty pool Curve Finance, decen­tral­ized exchange Uniswap and lend­ing pro­to­col Aave.

Arbi­tri­um activ­i­ty chart cour­tesy of Del­phi Dig­i­tal (source).

The pro­to­col is yet to launch its own native token, but Steven Goldfed­er, co-founder of Arbi­tri­um devel­op­er Offchain Labs, has cryp­ti­cal­ly hint­ed that an air­drop could even­tu­al­ly occur, fol­low­ing in Optimism’s footsteps.

Arbitrum’s growth can be part­ly attrib­uted the Nitro upgrade, which intro­duced low­er fees, increased capac­i­ty and smoother devel­op­ment, Goldfed­er told Block­works in an email.

“At the same time, the Arbi­trum ecosys­tem has been steadi­ly grow­ing and this increase in adop­tion is large­ly a reflec­tion of this con­tin­ued organ­ic growth,” Goldfed­er said.

Arbitrum scales Ethereum to defy bear market

Aus­tralia-based blockchain infra­struc­ture provider Myceli­um debuted its per­pet­u­al swaps on Arbi­trum in August under the guid­ance of for­mer Bit­MEX exec­u­tive Arthur Hayes.

“When Myceli­um first deployed deriv­a­tive smart con­tracts in Sep­tem­ber 2021, Arbi­trum was a nat­ur­al choice,” Myceli­um co-founder Patrick McNab told Block­works. “Their growth since then is a suc­cess sto­ry that has defied the bear mar­ket odds.”

McNab added the net­work effects of access to liq­uid­i­ty, as well as pro­to­cols expand­ing syn­er­gis­ti­cal­ly, have led to large growth and inno­va­tion in Ethereum pro­to­cols over the past two years. “That is now play­ing out on Lay­er 2s like Arbitrum.”

Offchain Labs has raised some $147 mil­lion in fund­ing from the likes of Light­speed Ven­tures, Coin­base Ven­tures, Pan­tera Cap­i­tal and cryp­to bil­lion­aire Mark Cuban, among oth­ers, data from Pitch­book shows. Offchain’s post-mon­ey val­u­a­tion is more than $1.2 billion.


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  • Sebas­t­ian Sinclair

    Block­works

    Senior Reporter, Asia News Desk

    Sebas­t­ian Sin­clair is a senior news reporter for Block­works oper­at­ing in South East Asia. He has expe­ri­ence cov­er­ing the cryp­to mar­ket as well as cer­tain devel­op­ments affect­ing the indus­try includ­ing reg­u­la­tion, busi­ness and M&As. He cur­rent­ly holds no cryptocurrencies.

    Con­tact Sebas­t­ian via email at [email pro­tect­ed]



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