Arbitrum One Outshines Other L2 after Exceeding 1B Transactions

Coinspeaker
Arbitrum One Outshines Other L2 after Exceeding 1B Transactions

Arbitrum One has successfully exceeded a milestone of 1 billion transactions in just three years after its mannet launch. This achievement places the Layer 2 optimistic rollup for Ethereum ETH $2 499 24h volatility: -4.5% Market cap: $300.53 B Vol. 24h: $18.17 B ahead of its counterparts. Blockscan data confirms that Arbitrum One’s competitor Base has recorded 755 million transactions, while OP Mainnet has reached 347 million.

Arbitrum Recovers after a Period of Gloom

Regarding Total Value Locked (TVL), Arbitrum ARB $0.56 24h volatility: -9.6% Market cap: $2.05 B Vol. 24h: $358.61 M also leads other L2 blockchains. Its TVL of $2.5 billion is the highest and is closely followed by Base at $2.2 billion, per Defillama data. The Coinbase L2 is currently leading in daily transactions, with Arbitrum ranking second. Arbitrum’s high network activities were spotted in August, reflecting an increasing user base.

The positive results on these metrics show an improved atmosphere in the Arbitrum ecosystem. In July, Arbitrum was seen as the least-performing Ethereum L2 solution. The network recorded weak price performance amidst other dwindling metrics at the time. Although the downtrend coincided with a general downtrend in the crypto ecosystem, many entities were still concerned about Arbitrum’s reputation.

During that period, they were skeptical because only 0.47% of the total addresses in Arbitrum were “in the money” or making profits. This makes up an equivalent of about 5,360 addresses. On the other hand, 96.78% of addresses were “out of the money”. By this percentage, more than 1.15 million addresses were unprofitable. The last group was spotted as “at the money,” with no loss or gain.

Noteworthy, Polygon had 19,270 addresses “in the money,” corresponding with 2.96% of the total number of addresses on the L2. It also had the most significant portion of its addresses “out of the money”. Precisely, 627,110 Polygon addresses, or 96.44% of the total, were not profitable. Meanwhile, 0.60% or 3,870 addresses were at the break-even point.

The latest milestone, which Arbitrum and other key metrics marked, suggests that the L2 has entered a more favorable environment.

Decentralization Vision for Ethereum L2s

In related L2 news, Ethereum co-founder Vitalik Buterin has developed strict decentralization standards for L2s on the blockchain. In an X post from September 12, he set a firm line for L2 scaling networks, signaling that only those reaching “Stage 1” in decentralization will receive his approval and public support. This new rule will take effect in 2025.

He highlighted projects with which he has personal ties or investments, citing that it won’t change his stance. In the update, Buterin added, “Stage 1 or nothing.” This Stage 1 adds key elements like fraud or validity proofs and a multi-signature setup guided by external oversight and a secure council. These are all towards ensuring that L2 networks move towards decentralization.

This strict decision highlights Ethereum’s vision for a decentralized and secure future. In response to the Ethereum co-founder’s statement, several zero-knowledge rollup teams have adjusted to reach this goal by late 2024.

Arbitrum One Outshines Other L2 after Exceeding 1B Transactions