Arbitrum Dominates Ethereum Layer-2: Daily Transactions and Volume Hit New Highs

Arbitrum Dominates Ethereum Layer-2: Daily Transactions and Volume Hit New Highs

  • Arbitrum broke daily transactions and volume all time-highs this past week.
  • Arbitrum processed almost a million transactions on Monday.
  • The leading Ethereum Layer-2 scaling project also reached a new all-time high in terms of active addresses.

Arbitrum, the leading Ethereum Layer-2 scaling solution, has seen a huge increase in activity on its network in the past week.

The optimistic rollup hit two new all-time highs. First, Arbitrum processed 927,023 transactions on Monday. That’s almost the same number of transactions Ethereum did on that same day – 1,059,640.

On top of that, Arbitrum saw $2.7 billion in weekly volume last week, according to data from DefiLlama. On February 16 alone, Arbitrum saw $502.22 million flowing through various decentralized exchanges (DEX), a daily high for the network.

Arbitrum volume

Daily volumes on Arbitrum. Source: DefiLlama.

This has made Arbitrum the second most active blockchain in the last seven days. Only Ethereum has a larger seven-day volume of $13.17 billion.

Most of the trading activity was done on Uniswap (UNI), which saw $1.6 billion in volume. SushiSwap (SUSHI), Camelot (GRAIL), GMX (GMX), Trader Joe (JOE), KyberSwap, and Curve (CRV) added more than $1 billion.

Arbitrum also reached a new all-time high in terms of active addresses on Monday. There are now 117,798 active addresses interacting with various decentralized apps on Arbitrum.

Arbitrum has $1.18 billion in total value locked (TVL) and is behind only Ethereum ($10.33 billion) and Binance Smart Chain ($3.14 billion), according to DefiLlama.

On the Flipside

  • The increased activity on Arbitrum may be related to airdrop farming. The same happened with Optimism when it announced Optimism Quests, a list of tasks for users to complete and be rewarded with NFTs. Once the quests ended, activity on Optimism plunged.
  • Arbitrum is an optimistic rollup, which Ethereum co-founder Vitalik Buterin said will only be relevant in the near term. In the long term, general-purpose validity rollups might overtake optimistic rollups as the dominant technology to scale Ethereum.

Why You Should Care

Arbitrum is the leading Ethereum Layer-2 scaling project. Seeing such activity on Arbitrum is a welcoming sign to both the team behind the project and the users who have the chance to use Ethereum with low fees and fast transaction times.

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