• Arbitrum’s Total Value Locked (TVL) has increased 81% since the beginning of 2021.
• The daily transactions on Arbitrum have jumped by more than 6 times since the beginning of 2023.
• The network fee on Ethereum is much higher than that of Arbitrum, however, it has a faster-growing user base due to an increase in DeFi and gaming applications on the chain.
Arbitrum Surpasses Ethereum in Daily Transactions
Arbitrum, a Layer 2 blockchain scaling solution, managed to surpass Ethereum in daily transactions on Tuesday, February 21. The total number of daily transactions on the Arbitrum blockchain has jumped by more than 6 times since the start of 2023 and reached 1,103,398. At the same time, the number of unique addresses on the network also reached an all-time high with about 2.95 million active users.
Total Value Locked (TVL)
As per data from TVL aggregator DeFiLama, Arbitrum’s total value locked (TVL) has jumped by 81% year-to-date all the way to $1.85 billion. This surge in user numbers and transactions is due to a huge increase in DeFi activities taking place on the platform as well as speculation about a potential Arbitrum drop among users.
Network Fee Comparison
The Ethereum blockchain currently garners a single day network fee of $6.7 million while that for Arbiturm is just $154,000 at present – less than 2.3% of what Ethereum charges its users for transactions per day.
The rapid growth seen by Arbiturm can be attributed to its app system specifically consisting of gaming and DeFi applications such as Crypto derivatives exchange GMX which contributes around $400 million in daily volumes and $500,000 in daily revenue along with other trading platforms like Vela, Gains Network etcetera which are contributing to this surge in activity levels experienced by Arbiturm recently.
In conclusion it can be said that layer 2 networks are quickly growing their dominance in today’s market thanks to their scalability solutions such as those provided by Arbiturm which have enabled them to surpass even Ethereum when it comes to daily transaction numbers despite charging much lower network fees than its competitor – making them highly attractive options for both developers and traders alike who want quick and cheap transactions without compromising security or privacy standards set forth by blockchains today