Arbitrum and Optimism, two prominent Layer-2 solutions for Ethereum, have witnessed a significant surge in transaction activities this year. According to data from IntoTheBlock, the transaction volume on both networks has quadrupled over the past year. This growth became particularly evident in the second quarter after the integration of Ethereum Improvement Proposal (EIP) 4844, which aimed to improve Ethereum’s scalability by introducing a more efficient transaction type.
Arbitrum has experienced greater transaction growth compared to Optimism since the beginning of the year. Initially, Arbitrum’s transactions were below 1 million, but they increased significantly after March, reaching a peak of approximately 2.6 million transactions on June 26. On the other hand, Optimism witnessed a surge in early April with transactions exceeding 800,000. However, it has since experienced a significant decline, with transaction counts dropping to over 409,000.
Despite the increase in transaction volumes, the Total Value Locked (TVL) on both platforms has decreased. According to DeFiLlama data, Arbitrum’s TVL surpassed $3.1 billion in March, indicating significant adoption and investment. However, recent figures show that the TVL has dropped to approximately $2.7 billion. Similarly, Optimism’s TVL exceeded the $1 billion mark in March but has now dropped to around $665 million. These declines may be attributed to changes in investor sentiment, broader market conditions, or specific events within the Layer-2 networks.
Both the ARB and OP tokens have shown a downward trend in value. OP has faced strong resistance at the $2.2 level and is currently trading at approximately $1.7 with a modest increase of less than 1%. Similarly, ARB has solidified its resistance level around $1 and is trading at approximately $0.7 with a slight increase of less than 1%. The inability of both cryptocurrencies to meet expectations has led to investor frustration and a loss of confidence in the projects, as reflected in their price levels.
Disclaimer: The information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research. Stay updated with our news on Telegram, Facebook, Twitter & Coinmarketcap.
