Optimism Outpaces Arbitrum in Transaction Volume
Ethereum layer-2 scaling solutions Optimism and Arbitrum are in a fierce competition over transaction activity.
Over the past month, there has been a noticeable divergence in activity between Optimism and Arbitrum. According to data from The Block, Optimism has been averaging 675,000 transactions per day, while Arbitrum lags behind with only 305,000 transactions. Since December, Optimism has surged ahead, leaving its competitor in the dust.
Transaction volumes on Optimism and Arbitrum. Source: The Block
Although both protocols have shown steady growth since the beginning of 2022, this is the first time Optimism has significantly outpaced Arbitrum. What’s driving this discrepancy?
Active users on Optimism may be responding to the platform’s token effects. The OP token has seen a positive price reaction recently, with its value increasing by over 41% on a weekly basis and nearly 90% compared to the previous month. Currently, OP is trading around $1.77.
1-hour chart of OP/USDT on Binance as of 10:45 AM on January 18, 2023
Other tokens within the Optimism ecosystem, such as Velo and Sonne, have also demonstrated impressive performance on similar timeframes.
Optimism (OP), a layer-2 scaling solution for Ethereum, launched its OP token in June along with a highly anticipated airdrop. Since then, Optimism has introduced several initiatives to attract users to the platform, including the Optimism Collective governance structure, which features a “bicameral” system with the Token House and Citizens’ House, as well as the Optimism Stimpack ecosystem development fund. Recently, Optimism also announced a $10 million grant program for useful projects.
In contrast, Arbitrum has yet to release its own token and has not engaged in many user acquisition activities throughout 2022. The number of daily transactions on Arbitrum dropped by over 50% in December 2022.
However, when considering total value locked (TVL), Arbitrum (with $1.66 billion) still surpasses Optimism (with $670 million) by a factor of 2.5, indicating that Arbitrum remains a layer-2 solution with significant room for future growth.
Ranking of popular layer-2 projects by TVL. Source: L2beat
Additionally, there are now more effective alternatives available to users. Derivatives and staking solutions from platforms like Lido and Rocket Pool are also gaining traction within the community.
