See More

Optimism Surpasses Arbitrum for Layer 2 Daily Transactions

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • Optimism surpasses Arbitrum in daily transactions, marking the first transaction flippening since January 2023.
  • The total value locked in Optimism hits an all-time high of $2.8 billion, representing a 27.3% market share of the layer-2 ecosystem.
  • Despite a recent decline, Arbitrum remains the market leader with a total value locked of $5.9 billion and a 57.8% market share.
  • promo

The Layer 2 landscape is shifting with Optimism now surpassing the dominant player Arbitrum for daily transactions. However, Arbitrum still remains on top for the total value locked on the network. 

On July 27, on-chain metrics provider Artemis revealed that Optimism has surpassed Arbitrum in terms of daily transactions.

Layer 2 Landscape Outlook 

The transaction flippening is the first time this has occurred since January 2023. This could be the start of a new trend, Artemis postulated. 

According to the Optimism tracker, the network had 944,668 transactions on July 27. Comparatively, the Arbitrum explorer reported 658,103 transactions for the same date so the difference is quite notable.

Optimism and Arbitrum daily tx. Source: Twitter/@Artemis__xyz
Optimism and Arbitrum daily transactions. Source: Twitter/@Artemis__xyz

Furthermore, activity on Optimism has ticked up over the past week. The transactions per second (TPS) count has increased 78% over the previous week to 10.93, according to L2beat.

Optimism’s total value locked (TVL) is also at an all-time high of $2.8 billion having increased by 30% over the past month. This gives it a 27.3% market share of the overall Layer 2 ecosystem.

The market leader is Arbitrum One with a TVL of $5.9 billion and a commanding market share of 57.8%. However, Arbitrum TVL has actually declined marginally over the past two weeks. 

Learn more about Ethereum scaling solutions here.

The two Layer 2 networks together account for 85% of the total activity in the L2 ecosystem. TVL for all networks combined is $10.3 billion having increased by 150% since the beginning of 2023. 

Commenting on L2 on July 27, Coinbase CEO Brian Armstrong said: “The next step for crypto is to make payments instant and free globally.”

“This will take lots of work from all of us, Coinbase included, getting Layer 2s integrated, better on-ramps, simpler UX/onboarding, etc.”

OP and ARB Price Outlook

Optimism’s native token, OP, has taken a 3.8% hit on the day in a fall to $1.47. Nevertheless, the Layer 2 token has gained 15% over the past month. OP has a market cap of just under $1 billion and remains 54% down from its February all-time high of $3.22.

Arbitrum’s ARB token is also down 3.2% to trade at $1.16 at the time of writing. ARB has lost 8% over the past seven days in alignment with the broader crypto market correction. ARB has a $1.5 billion market cap and is 86% away from its peak price of $8.67 in March. 

Top crypto platforms in the US | February 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

profile.jpg
Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
READ FULL BIO
Sponsored
Sponsored