Which Protocol Handles the Most Ethereum Transactions?
Activity on Arbitrum, Ethereum second-layer network, has reached new highs as an impending airdrop is expected.
The social media buzz has contributed with the TVL in the network increasing by more than 13% in the last month. Arbitrum’s TVL stood at $1.05 billion at the time of publication, eclipsing so-called “Ethereum killer” Solana and even direct competitor Optimism.
Not to mention that transactions have shot up more than 550% since the launch of the Nitro network upgrade in August, now accounting for 62% of Ethereum’s weekly transactions, research firm Delphi Digital reported earlier this week. Prior to that surge, Arbitrum handled just 9% of the blockchain’s activity.
That coincided with a surge in unique wallet addresses, which on Monday reached more than 1.66 million for the first time. It should be noted that this figure also accounts for individuals holding multiple addresses.
The protocol has yet to release its own token, but Steven Goldfather, co-founder of the developer behind Arbitrum – Offchain Labs – has cryptically hinted that there may eventually be an airdrop.
Arbitrum’s growth can be attributed in part to the Nitro upgrade, which introduced lower fees, increased capacity and smooth development.
“At the same time, Arbitrum’s ecosystem is continually growing, and this increase in adoption is largely a reflection of that continued organic growth“, Goldfeder said.
Arbitrum scales Ethereum to counter bear market
Australia-based blockchain infrastructure provider Mycelium debuted its perpetual contracts on Arbitrum in August under the leadership of former BitMEX CEO Arthur Hayes.
“When Mycelium first deployed derivative smart contracts in September 2021, Arbitrum was the natural choice“, said Mycelium co-founder Patrick McNabb. “Their growth since then has been a success story that has defied the odds in a bear market.”
McNabb added that the network effects of access to liquidity have led to great growth and innovation in Ethereum’s protocols over the past two years. “This is now manifesting in L2 protocols like Arbitrum.”
Offchain Labs has raised about $147 million in funding from companies such as Lightspeed Ventures, Coinbase Ventures, Pantera Capital and billionaire Mark Cuban, among others, according to Pitchbook. Offchain’s valuation after investments is more than $1.2 billion.