- Layer-2 solutions show growth in terms of TVL share, according to a new report
- The number of active addresses and transactions increased as well
According to data provided by Messari, a crypto analytics firm, layer-2 solutions, such as Arbitrum and Optimism witnessed improvements in terms of adoption. This could be due to the growing TVL share of both L2s.
As the hype of alternative L1s wore off, commitment to scaling the Ethereum ecosystem paid dividends. pic.twitter.com/xMTo0DfaOm
— Messari (@MessariCrypto) December 17, 2022
Read Optimism’s [OP] Price Prediction for 2023-24
Arbitrum and Optimism: Competing in the big leagues
Messari’s data further found that Arbitrum and Optimism had grown in terms of total value locked (TVL) share. These protocols outperformed other protocols such as Fantom and Solana in this category.
One reason for the same would be that as technology has progressed, it has become easier for projects to port over to rollups like Arbitrum and Optimism. Centralized exchanges have also integrated these layer 2 solutions.
These L2 solutions generated user interest through other means as well. For instance, Optimism showed positive growth in the NFT space.
Data acquired by Dune Analytics suggested that the number of buyers of Optimism NFTs had grown significantly over the last few months. Initiatives such as launching Optimism quests and other launches to attract more users paid off for the layer 2 solutions.
Comparisons to be made on Layer 2 solutions
However, the main appeal of the Layer 2 solutions would be their declining transaction fees.
According to data gathered by Dune Analytics, the fees on both the layer 2 solutions had declined significantly. Coupled with that, both layer 2 solutions helped users save funds. Even though both solutions helped users from high Ethereum gas fees, Arbitrum outperformed Optimism and saved users more money.
Both solutions witnessed a spike in activity, too. Over the last three months, active addresses on both solutions noticed a massive spike. However, even in this regard, Arbitrum had more active addresses on its network than Optimism.
Another indicator of the growth of the layer 2 solutions would be the fact that the number of transactions on the solutions was escalating. The transactions being made on their protocols were getting closer to the number of transactions being made on Ethereum.
If these layer 2 solutions transactions continue going in the same trajectory, they might match the number of transactions being made on the Ethereum network.
It remains to be seen whether the L2 solutions would be able to catch up with Ethereum in the future.
At the time of writing, Optimism’s native token, OP, had capitalized on the interest in its network. It was currently trading at 0.9406 after its price rose by 0.43% in the last 24 hours.