Arbitrum One Surpasses 1B Transactions Since Its Debut In 2021
Arbitrum One, an Ethereum Layer 2 rollup solution, has surpassed one billion transactions since its mainnet debut in 2021. This latest move marks a new feat for the network, confirming its dominance among other layer 2 rollups.
Moreover, Arbitrum One boasts over $2.5 in total value locked (TVL), the largest on the Ethereum network.
Arbitrum Hits A Milestone With Over 1 Billion Transaction CountEthereum Layer 2 rollup solution Arbitrum One took to X to celebrate its 1 billion transaction milestone achieved three years after its mainnet debut in August 2021.
Arbitrum One just hit 1 billion transactions!
Onwards to the next billion. pic.twitter.com/OvXzUYYCuf
- Arbitrum (
,
) (@arbitrum) September 30, 2024
According to Blockscan data, the network has surpassed 1 billion transactions. The data indicated that a fifth of total transactions, amounting to 17.71%, stems from DeFi activities on the network.
Arbitrum ranks among the most active L2 networks on the Ethereum blockchain, leveraging its early advent. It initially kicked off as a VC-backed platform but attracted most L2 traffic.
The L2 network achieved its recent transaction count as it gained more traction and usage. Moreover, the chain stands as the most active bridging platform, with over $9.62 billion in value bridged.
Also, Arbitrum's transaction count appears more organic, unlike some L2 chains that subsidize their transactions.
Arbitrum has also completed its initial airdrop phase. So, its transaction growth indicates that VC-backed chains could get organic traffic after airdrop speculation.
Meanwhile, other Layer 2 rollup networks on the Ethereum blockchain are considerably behind Arbitrum One. Base, Coinbase's blockchain, boasts 755 million transactions, while OP Mainnet has hit 347 million transactions.
Also, Arbitrum One maintains a dominant stance as the leading L2 solution regarding total value locked (TVL). DeFiLlama data shows it boasts a TVL of over $2.52 billion, while Base has $2.25 billion in TVL.
On the other hand, Base takes the lead in daily transactions, where meme tokens, low-cost, and micropayment drive the traffic, while Arbitrum follows closely.
Arbitrum Functionalities And Growth TrendOffchain Labs developed Arbitrum to operate uniquely with optimistic rollup technology. The L2 functions with an off-chain computation arm that facilitates speedy and more cost-effective transactions without compromising security.
Moreover, Arbitrum's optimistic' feature handles all transactions as valid by default and will only verify them if challenged. This functionality lowers the Ethereum mainnet's computation load and reduces transaction speeds at reduced fees.
Arbitrum developers run two different Layer 2 networks in the Ethereum blockchain. The first is the Arbitrum One network, the flagship chain. Arbitrum Nova is the second L2 chain that functions with AntTrust technology, stores transaction data, and scales applications.
Meanwhile, most of Arbitrum's growth stems from its connection with the Ethereum ecosystem. The L2 optimistic rollup is among the top recipients of inflows from the Ethereum network, supported by its business and technological alignment.
Arbitrum received over $2.63 billion in inflows from Ethereum, with 25.5% dedicated to bridged stablecoins. Another growth factor is Aave V3, which constitutes about 30% of Arbitrum's TVL. Arbitrum has amassed $3.29 billion in liquidity, distributed among smaller DeFi projects.
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