Arbitrum and Optimism, two important Layer-2 solutions of Ethereum, have witnessed a significant surge in transaction activities this year. According to data from IntoTheBlock, the transaction volume on both networks has quadrupled in the past year. This increase became particularly evident in the second quarter following the integration of Ethereum Improvement Proposal (EIP) 4844, which aimed to enhance Ethereum’s scalability by introducing a more efficient transaction type.
When it comes to transaction volumes, Arbitrum has experienced greater growth compared to Optimism since the beginning of the year. Initially, Arbitrum’s transactions were below 1 million, but they started to increase after March and reached a peak of approximately 2.6 million transactions on June 26. On the other hand, Optimism saw a surge in early April with transactions exceeding 800,000, but it has since witnessed a significant decline. Currently, Arbitrum conducts over 1.5 million transactions, while Optimism’s transaction count has dropped to over 409,000.
Despite the increase in transaction volumes, the Total Value Locked (TVL) on both platforms has decreased. In March, Arbitrum’s TVL surpassed $3.1 billion, 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 since 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 ARB and OP tokens have also experienced a decline in value. OP’s price 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 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.
It’s important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
