Arbitrum One Outshines Other L2 after Exceeding 1B Transactions | Coinspeaker

Arbitrum One Outshines Other L2 after Exceeding 1B Transactions

Godfrey Benjamin By Godfrey Benjamin Julia Sakovich Edited by Julia Sakovich Updated 3 min read
Arbitrum One Outshines Other L2 after Exceeding 1B Transactions
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Arbitrum One has recorded a total of 1 billion transaction, a feat it attained after 3 years of launch.

Key Notes

  • Arbitrum One is back in the spotlight with epic transaction milestone.
  • The protocol also leads its peers in Total Value Locked.
  • The Ethereum L2 ecosystem is seeing intense competition.

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 $2 457 24h volatility: 1.8% Market cap: $295.96 B Vol. 24h: $13.23 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 $0.54 24h volatility: 0.3% Market cap: $1.95 B Vol. 24h: $226.77 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.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Arbitrum (ARB) News, Blockchain News, Cryptocurrency News, News
Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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