The post 2024, mixed bag for Arbitrum and Optimism – Why? appeared on BitcoinEthereumNews.com.

Arbitrum and Optimism saw more transactions in the new year. ARB and OP were in a bear trend at press time. Arbitrum [ARB] and Optimism [OP], two prominent Layer 2 scaling solutions for Ethereum [ETH], have experienced an increase in transaction activity this year, according to available data. Despite this positive trend in transaction volume, both networks have seen a decline in their Total Value Locked (TVL) in recent days. Furthermore, the value of their native tokens has also declined.  Arbitrum and Optimism see increased transactions According to a recent analysis by IntoTheBlock, the transaction volume on leading Ethereum Layer 2 solutions such as Arbitrum and Optimism has quadrupled over the past year. This surge in activity was particularly pronounced in the second quarter, following the integration of Ethereum Improvement Proposal (EIP) 4844.  EIP-4844 is designed to enhance the scalability of Ethereum by introducing a new type of transaction that handles data more efficiently, contributing to lower fees and higher throughput. Further analysis from Growthepie indicated that between the two, Arbitrum has experienced more substantial growth since the start of the new year. Before this period of rapid growth, ARB transactions were under 1 million.  However, post-March, the transaction count on ARB escalated significantly, reaching over 1 million and peaking at approximately 2.6 million transactions on the 26th of June. In comparison, OP showed a spike in early April, with transactions exceeding 800,000, but has since seen a notable decrease. As of this writing, ARB has maintained a high level of activity with over 1.5 million transactions, whereas Optimism’s transaction count has decreased to over 409,000.  TVL on Arbitrum and Optimism declines The Total Value Locked (TVL) on Layer 2 solutions like Arbitrum and Optimism, as reported by DeFiLlama, showed a pattern of initial increases followed by subsequent declines.  This…

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Filed under: News - @ July 1, 2024 2:14 pm