- Arbitrum is leading as a major L2 in terms of trading boom.
- ARB's price is rising today as investors are optimistic about its future prospects.
Layer 2 scaling solution Arbitrum (ARB) has reached new highs in daily active addresses and transactions, making it a major competitor in its industry.
Arbitrum Leading Ethereum Layer 2 inflow
Recent data from token terminal show Arbitrum performed better than other layer 2 solutions on the Ethereum (ETH) network. Arbitrum led the way with $10.2 billion in inflows, followed by OP Mainnet in second place with $4.8 billion and Blast in third place with $2.1 billion.
In terms of market activity, daily active addresses on Arbitrum have increased from 250,000 to 400,000 over the past week. He also reached 1.5 million transactions per day. This spike in activity highlights user interest in the platform.
However, decentralized finance (DeFi), the core of many layer 2 solutions, appears to be lagging behind. The trading volume of decentralized exchanges (DEX) plummeted from 2.2 billion to 500 million in a matter of days.
Similarly, Total Value Locked (TVL) has also declined from $3.3 billion to $2.65 billion since March. These reductions lead to revenue losses for the respective networks.
Outlook for network development
Another concern is network development. Analyzing code commits and core developer contributions reveals a downward trend. This slowdown in development activity could hinder Arbitrum's long-term growth.
While these factors may cause a temporary setback, Arbitrum's increased activity shows that its user base remains engaged. His Arbitrum features such as optimistic rollups allow users to enjoy low fees while trading in a highly scalable ecosystem supported by the main Ethereum network. Ultimately, the success of layer 2 solutions like Arbitrum will benefit layer 1 platforms like Ethereum by enabling scalability and broad user accessibility.
As Arbitrum overcomes these challenges, its continued growth could contribute to the improvement of the Ethereum network as a whole.
Mirroring previous reporting by Crypto News Flash, Ethereum's L2 was created to process around 15 transactions per second and address scalability concerns encountered by users on the main chain, where gas prices are high. I did. Optimistic rollups such as Arbitrum allow users to trade faster and at lower prices.
Meanwhile, Arbitrum recently witnessed a notable event where whales started depositing huge amounts of ARB tokens into exchanges. As previously reported by Crypto News Flash, at least 11 whales have deposited approximately $58 million worth of ARB tokens following Arbitrum's recent token unlock event.
Analysts’ optimistic forecasts for Arbitrum
This protocol is one of the tokens currently gaining momentum in the cryptocurrency market. According to current Marketcap data, ARB is trading at: $1.12shows an increase in 5.88% in the past.
Market capitalization also increased 5.9% Volume increased more than 39% to $298 million. Analysts expect Arbitrum to outperform the current cycle high of $2.4. They proposed a target price of $4 for the upcoming altcoin market rally.
