Ethereum ranks as one of the best existing blockchains with the Bitcoin network. While it’s been in the news more and more lately, Arbitrum comes into play and outclasses it when you least expect it. The reasons for this sudden boom? The sequel below.
Layer 2, when Arbitrum takes the lead over Ethereum
The Ethereum upgrade propels the blockchain into the limelight. However, if everything seems to be going well, certain details are undermining the network, among other things, the cost of transactions on Ethereum. After many solutions, Bitcoin’s main competitor is overtaken by Arbitrum in terms of daily transactions.
On February 21, Arbitrum’s Layer 2 took the lead over the second blockchain in daily transactions and positioned itself as the main layer 2 rollup.
Recall that Arbitrum is the fourth largest blockchain in terms of total value locked (TVL). According to blockchain explorer Arbiscan, the number of daily transactions has increased by about 590% in just two months. As of January 1 this year, the number of daily transactions stood at 159,919.
A few weeks later, that number hovers around 1,103,398 daily transactions. This increase is much higher than that of Ethereum which amounts to only 46% according to Etherscan. Currently, there are 1,084,290 daily transactions on Ethereum.
But that’s not all, Arbitrum has also reached a record level in terms of unique addresses, now estimating at 2.95 million addresses. According to TVL aggregator DeFiLlama, TVL on Arbitrum is up around 81% since January 1, and is approaching $2 billion. However, this sudden rise raises many questions. Among other things, the reason behind this massive activity.
However, despite the current course, Ethereum is still ahead of Arbitrum when it comes to network fees. On Ethereum, one-day fees amount to $6.7 million while those on Arbitrum are estimated at just $154,000. Be that as it may, Arbitrum continues on its way and integration on Opensea will certainly propel it further!
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
