Describes how Arbitrum (ARB) continues to outperform its peers in the L2 space
Over the last few months, Arbitrum (ARB) has consistently outperformed many other layer 2 solutions in growth. Network DApps play an important role in sustaining improvements.
Axelar, a well-known dApp on Arbitrum, saw a 249.5% increase in gas consumption on its network. Gnosis and Perennial, two other dApps on Arbitrum, are also upping the ante.
The high demand for dApps Arbitrum has helped the network’s spike in transactions tremendously.
Arbitrum will have an average of 160,000 active addresses per day by 2023 alone, according to Messari data. When compared to the Optimism network, this protocol is able to handle almost twice as many transactions.
Even though both protocols offer the same utility to users, there are significant differences in activity. Both Optimism and Arbitrum charge comparable transaction fees. Comparatively, user savings on each protocol are not significantly different.
Dwindling excitement for NFTs Optimism can contribute to a decline in interest.
The network experienced a spike in activity when the Optimism Quests NFT was introduced to encourage new users to adopt the protocol. However, network activity decreased when the Quest initiative ended.
Data from Dune Analytics shows that overall interest in Optimism NFTs has dropped significantly over the last few months. Regarding the DeFi market, both protocols have recently shown signs of growing DEX volumes. However, the TVL in the two networks do not match to the same extent.
Over the last few weeks, TVL Arbitrum has increased significantly, while TVL Optimism has remained constant. Even though Arbitrum is leading the L2 market, it is important to remember that the launch of the ARB token is largely responsible for network activity.
Arbitrum’s hegemony may eventually be challenged as interest in the token wanes and new rivals such as Era zkSync and StarkNet begin to gain ground.