The Rising Popularity of Arbitrum’s Layer2 Expansion Solution

03/23/2023 03:47 • Tech Ticker • 130 views

According to the latest data from Dune Analytics, the number of users participating in bridging transactions for the Ethereum Layer2 expansion solution, Arbitrum, has exceeded 600000, reaching 608521 at the time of writing. Currently, the total value of cross chain bridging storage is 2322592, which is approximately $4.08 billion based on current prices. In terms of other L2 cross chain bridges, the current total value of Optimism cross chain bridge storage is 520292 ETHs, zkSync 221809 ETHs, and StarkNet 19308 ETHs.

The number of users participating in Arbitrum bridging exceeded 600000, and the bridging TVL exceeded $4 billion

With the rise of decentralized finance (DeFi), the Ethereum network has been facing challenges with network congestion and high transaction fees. This has led to the development of Layer2 solutions, which aim to improve the speed and scalability of the Ethereum network.
One of the most popular Layer2 solutions is Arbitrum, an Ethereum scaling solution that allows for faster and cheaper transactions. According to the latest data from Dune Analytics, the number of users participating in bridging transactions for Arbitrum has exceeded 600,000, reaching 608,521 at the time of writing.

What is Arbitrum?

Arbitrum is a Layer2 scaling solution that uses Optimistic Rollups to increase transaction throughput on the Ethereum network. Optimistic Rollups are a type of Layer2 scaling that allow for faster transaction confirmations by using off-chain computation and verification. This allows for transactions to be batched and confirmed on the Ethereum blockchain, increasing transaction throughput and reducing gas fees.

The Popularity of Arbitrum

The rising popularity of Arbitrum can be attributed to its fast and cheap transaction fees, as well as its compatibility with the Ethereum network. Arbitrum allows users to bridge Ethereum assets to Layer2 solutions, including exchanges, yield farms, and lending protocols. This makes it easier for users to access DeFi applications without the high transaction fees associated with on-chain transactions.
According to the latest data from Dune Analytics, the total value of cross-chain bridging storage for Arbitrum is 2,322,592, which is approximately $4.08 billion based on current prices. This shows a significant amount of assets being transferred to Arbitrum for use in DeFi applications.

Other L2 Cross-Chain Bridges

Apart from Arbitrum, there are other Layer2 solutions that offer cross-chain bridges. These include Optimism, zkSync, and StarkNet. As of now, the current total value of Optimism cross-chain bridge storage is 520,292 ETHs, zkSync 221,809 ETHs, and StarkNet 19,308 ETHs.

Conclusion

In conclusion, the popularity of Arbitrum’s Layer2 solution highlights the need for faster and cheaper transactions on the Ethereum network. The increase in users and assets being transferred to Arbitrum shows its potential to become a leader in the DeFi space. As the DeFi space continues to grow, Layer2 solutions like Arbitrum will continue to play a crucial role in improving the scalability of the Ethereum network.

FAQs

1. What is a Layer2 scaling solution?
A Layer2 scaling solution is a method used to increase the speed and scalability of the Ethereum network by using off-chain computation and verification.
2. Why is Arbitrum so popular?
Arbitrum is popular because of its fast and cheap transaction fees, as well as its compatibility with the Ethereum network. It allows users to bridge Ethereum assets to Layer2 solutions, enabling easier access to DeFi applications without the high transaction fees associated with on-chain transactions.
3. What are other Layer2 solutions besides Arbitrum?
Other Layer2 solutions include Optimism, zkSync, and StarkNet. These solutions also offer cross-chain bridges and aim to improve the scalability of the Ethereum network.

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