Arbitrum and Optimism, two important Layer-2 solutions for 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 noticeable in the second quarter after the integration of Ethereum Improvement Proposal (EIP) 4844, which aimed to improve Ethereum’s scalability by introducing a more efficient transaction type.
Arbitrum has experienced greater growth compared to Optimism since the beginning of the year. Initially, Arbitrum’s transactions were below 1 million, but after March, the number of transactions increased, reaching 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 experienced 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. According to DeFiLlama data, Arbitrum’s TVL surpassed $3.1 billion in March, indicating significant adoption and investment. However, recent figures show that the TVL has dropped to approximately $2.7 billion. Similarly, Optimism’s TVL exceeded $1 billion 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 the ARB and OP tokens have seen a decline in value. OP’s price has 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 has solidified its resistance level around $1 and is currently 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.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.