Layer-2s Arbitrum and Optimism (OP) Flip Ethereum (ETH) in Combined Transactions By DailyCoin

January 11, 2023 Brazen Crypto Team Ethereum 0

© Reuters Layer-2s Arbitrum and Optimism (OP) Flip Ethereum (ETH) in Combined Transactions

  • Layer-2 scaling projects Arbitrum and Optimism flipped Ethereum mainnet regarding processed transactions on January 10.
  • The two protocols processed 1.12 million transactions while Ethereum mainnet settled 1.02 million transactions.
  • Optimism also overtook Arbitrum in terms of transaction volumes and daily active addresses.
  • Arbitrum and Optimism have a combined market share of over 80%.
  • All Layer-2 protocols have had a bigger transaction per second (TPS) metric than Ethereum mainnet since October of last year.

Arbitrum and Optimism (OP), two Layer22 scaling solutions working to scale Ethereum, have overtaken ETH in terms of combined transactions.

On Tuesday, Arbitrum and Optimism processed a combined 1.12 million transactions, while Ethereum mainnet settled 1.02 million.

Both Arbitrum and Optimism are optimistic rollups using fraud proofs to scale Ethereum. They both take large amounts of transactions off-chain, put them in batches, and send the batches back to Ethereum mainnet for confirmation, significantly reducing gas fees.

Optimism has also flipped Arbitrum for the first time in terms of transaction volumes and daily active addresses. Arbitrum doesn’t have a token yet, while Optimism does.

However, Arbitrum remains the Layer-2 protocol with the biggest total value locked (TVL). According to data from L2Beat, Arbitrum One has a TVL of $2.33 billion, while Optimism has $1.27 billion. Together the two protocols have a market share of over 80%.

A spike in activity on Layer22 networks has been seen since October of last year when all L2s overtook Ethereum in terms of transactions per second (TPS). Layer-2s are currently doing 18.91 TPS compared to Ethereum’s 12.28 TPS, according to L2Beat.

On the Flipside

  • Optimistic rollups are considered to be inferior to zero-knowledge rollups. However, no general-purpose zero-knowledge rollups are currently in mainnet.
  • A lot of the activity on Arbitrum and Optimism might be related to airdrop hunting.

Why You Should Care

Arbitrum and Optimism are two of the largest Ethereum Layer-2 scaling solutions. Users migrating to them is encouraging since both allow for much higher throughput than Ethereum mainnet for lower fees.

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See original on DailyCoin