by - Layer 2 Solutions Show Growth in TVL Share, Says New Report
- The number of active addresses and transactions also increased
According to data provided by Messari, a cryptanalytics company, Layer 2 solutions, such as Arbitrum and Optimism, have seen improvements in adoption. This could be due to the increasing TVL share of the two L2s.
As development tools have matured, it has become easier for projects to transfer to rollups like @arbitrum and @optimismFND and for CEXs to integrate as on and off ramps.
As the hype for alternative L1s has died down, the commitment to scaling the Ethereum ecosystem has paid off. pic.twitter.com/xMTo0DfaOm
—Messari (@MessariCrypto) December 17, 2022
Read optimism [OP] Price prediction for 2023-24
Arbitrum and optimism: playing in the big leagues
Messari’s data further revealed that arbitrage and optimism increased in terms of share of total value locked (TVL). These protocols outperformed other protocols such as Fantom and Solana in this category.
One reason for this would be that as technology advanced, it became easier for projects to transfer to rollups like Arbitrum and Optimism. Centralized exchanges have also integrated these layer 2 solutions.
These L2 solutions have also captured user interest in other ways. For example, Optimism has shown positive growth in the NFT space.
Data acquired by Dune Analytics suggests that the number of NFT Optimism buyers has increased significantly over the past few months. Initiatives such as the launch Optimism Quests and other spear attracting more users has paid off for Layer 2 solutions.
Source: Dune Analysis
Comparisons to be made on Layer 2 solutions
However, the main attraction of Layer 2 solutions would be their lower transaction fees.
According to data collected by Dune analysischarges on both Layer 2 solutions had dropped significantly. Additionally, both Layer 2 solutions have helped users save money. Even though both solutions helped users pay Ethereum’s high gas fees, Arbitrum surpassed optimism and saved users more money.
Source: Dune Analysis
Both solutions also saw a spike in activity. Over the past three months, active addresses on both solutions have seen a massive spike. However, even in this regard, Arbitrum had more active addresses on its network than Optimism.
Source: Dune Analysis
Another indicator of the growth of Layer 2 solutions would be the fact that the number of transactions on the solutions was increasing. The transactions made on their protocols were approaching the number of transactions made on Ethereum.
If these Layer 2 solution transactions continue on the same trajectory, they could match the number of transactions made on the Ethereum network.
Source: Dune Analysis
Whether L2 solutions would be able to catch up with Ethereum in the future remains to be seen.
As of this writing, Optimism native token OP has capitalized on interest in its network. It was currently trading at 0.9406 after its price rose 0.43% in the past 24 hours.
