Arbitrum a thriving Layer 2 network - Let us analytics to know more and predict its future
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Ethereum [ETH] Layer 2 (L2) scaling solutions continue to show strength despite difficult market conditions. And the good news is that investors are paying attention. But here is another twist or rather another portfolio enabler for the leading L2 platform, Arbitrum.
Arbitrum TVL strong grow
At the time of publication, Arbitrum has the highest total value locked (TVL) of all Layer 2 networks, with a market share of approximately 50%. According to L2Beat, optimism accounts for about 30% of the market share. Additionally, Arbitrum has $2.38 billion in TVL. This has created some excitement compared to other companions.
Arbitrum also offers the fastest recorded transaction returns and the shortest completion times compared to other L2. At the time of publication, the platform has a market share of 51.72% and over 80 dApps.
In fact, Arbitrum has a larger TVL than Solana, a layer 1 blockchain designed to facilitate smart contracts and the creation of new DApps. Truly a great milestone. But it wasn't a complete surprise because of Monday's collapse this year, hit by network congestion.
According to data from Defi Llama, the token's TVL has been on a steady decline since November 2021. Additionally, in November it hit an all-time high of $15 billion. However, TVL lost momentum and fell to $890 million.
To support this cause, Binance.US has provided some support to the platform regarding deposits and withdrawals. The team similarly announced on the social media platform that:
Meanwhile, the network even posted some impressive timelines with two main developments, Nitro and Odyssey.
Activity on Arbitrum has quadrupled after the Nitro update, with daily transactions hitting an all-time high for consecutive days this week. According to data from Arbiscan, on September 1, 319,000 transactions were performed on the blockchain network. This is a day after the Arbitrum Nitro update went live. At the time of publication, this number hovers around the 230k mark.
But what could take it to another level?
Guess what happens with Arbitrum next
Despite the glitz and glamor, Arbitrum's Q3 TVL was barely flat according to an analysis by ' The Tie ', a digital asset data interpretation platform.
According to the analytical background,
“Without a token, Arbitrum tracking is more focused on analyzing the user development and growth taking place within the ecosystem. Quarterly daily trades up 62.7% despite the unfavorable macro environment.”
Arbitrum has not issued tokens that can be used to incentivize TVL. In fact, help the network maintain the aforementioned growth.
So let's wait and see until then.
Oct 24, 2022