Arbitrum One hits 1 billion transaction milestone
Following its mainnet launch in August 2021, Arbitrum One, a Layer 2 (L2) optimistic rollup for Ethereum, has completed one billion transactions in just three years.
Arbitrum One just hit 1 billion transactions!
Onwards to the next billion. pic.twitter.com/OvXzUYYCuf— Arbitrum (💙,🧡) (@arbitrum) September 30, 2024
According to GrowThePie data, Arbitrum broke over 1 billion transactions, of which 17.71% were related to DeFi activities. Having arrived relatively early, Arbitrum is one of the busiest L2 chains. Although the project was initially funded by venture capital, it ultimately attracted the majority of L2 traffic.
Arbitrum breaks above 1 billion transactions
Although total number reporting varies, the Arbitrum team celebrated reaching the 1B cumulative transaction milestone. With 1.11 million transfers per day on the L1, Arbitrum easily surpasses Ethereum in this regard as well. One of the models that has been successful in scaling Ethereum as anticipated by rollups is Arbitrum.
Blockscan data shows that OP Mainnet has reached 347 million transactions to date, while its competitor Base has recorded 755 million transactions. The Block's data dashboard shows that Base, which Coinbase helped to develop, is currently leading the way in daily transactions, with Arbitrum coming in second.
DeFiLlama data indicates that, at $2.5 billion, Arbitrum's total value locked (TVL) is still the highest among Layer 2 solutions, followed by Base's $2.2 billion.
Growth of Arbitrum
As of September 2024, the Arbitrum chain had grown from fewer than 100,000 transactions per day to as many as two million transactions. The only platform with more traffic than Arbitrum is Base, where low-value transactions, micropayments, and meme tokens are the main drivers.
An important area of growth for Arbitrum is its integration with the Ethereum network. Because of its alignment with technology and business, Arbitrum is one of the largest net recipients of Ethereum inflows. Of the $2.63 billion that Ethereum sent to Arbitrum, 25.5% went toward bridging stablecoins.
How Does Arbitrum Work in Crypto?
Offchain Labs created Arbitrum, a Layer 2 solution that makes use of optimistic rollup technology. It develops an off-chain computation network that preserves Ethereum blockchain security to allow for faster and more economical transactions. The technology suite known as Arbitrum was created to scale Ethereum.
Active fraud proofs and a security feature that permits transaction challenges are features of Arbitrum One. But it's still in the early stages and hasn't reached the point where it's completely permissionless.
Distinct Layer 2 networks, each with its own ecosystem, are run on Ethereum by Offchain Labs. Arbitrum One is the flagship chain and the first network.
AnyTrust is the protocol used by Arbitrum Nova, the second Layer 2 chain. For the purpose of storing transaction data and expanding apps, this network serves as an off-chain data availability layer.
Arbitrum Records $150 billion in Total Transaction Volume on Uniswap
On May 6, it was announced that Arbitrum had transacted more than $150 billion on the decentralized platform Uniswap.
After Ethereum, BSC, Solana, and Tron, Arbitrum is the largest Layer 2 protocol and the fifth largest protocol overall, with a total value locked (TVL) of $2.64 billion, according to the blockchain data tracker DeFiLlama. Uniswap is the largest decentralized exchange by TVL, with $5.54 billion as of May 6, according to the data.
By August 2021, Uniswap was processing less than $5,000 worth of swap operations. This number has increased over the last three years after being implemented on Arbitrum in June 2021 and after on-chain data analysis. Uniswap alone had enabled transactions on Arbitrum worth over $146 billion by the end of April 25th.
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