Arbitrum One leads other L2 protocols in Total Value Locked and is back in the spotlight with an epic milestone of 1 billion transactions.
Arbitrum One has achieved the milestone of 1 billion transactions in a mere three years following the launch of its mannet. This accomplishment establishes Ethereum’s Layer 2 optimistic rollup as superior to its competitors. Arbitrum One’s competitor Base has recorded 755 million transactions, according to Blockscan data, while OP Mainnet has reached 347 million.
Arbitrum Recovers Following a Period of Doom
Arbitrum is also the leader among other L2 blockchains regarding total value locked (TVL). According to Defillama data, its TVL of $2.5 billion is the highest and closely followed by Base’s $2.2 billion. Arbitrum is ranked second, while Coinbase L2 is the leader in daily transactions. In August, Arbitrum’s high network activities were observed, which indicated an expanding user base.
The positive outcomes of these metrics indicate that the Arbitrum ecosystem has experienced an improvement in its atmosphere. Arbitrum was perceived as the Ethereum L2 solution with the lowest performance in July. In addition to other metrics that were declining at the time, the network demonstrated subpar price performance. Arbitrum’s reputation was a concern for numerous entities, even though the downtrend was concurrent with a general decline in the crypto ecosystem.
They were skeptical during that time because only 0.47% of the total addresses in Arbitrum were “in the money” or generating profits. This is equivalent to approximately 5,360 addresses. Conversely, 96.78% of addresses were “out of the money.” By this percentage, over 1.15 million addresses were considered unprofitable. The final group was identified as “at the money,” with no loss or gain.
Polygon had 19,270 addresses “in the money,” equivalent to 2.96% of the total addresses on the L2. This is noteworthy. Additionally, most of its addresses were “out of the money.” Specifically, 627,110 Polygon addresses, which account for 96.44% of the total, were not profitable. At the same time, 3,870 addresses, or 0.60%, were at the break-even point.
The L2 has entered a more favorable environment, as indicated by the most recent milestone, which Arbitrum and other vital metrics have also marked.
Ethereum L2s’ Decentralization Vision
Vitalik Buterin, the co-founder of Ethereum, has established stringent decentralization standards for L2s on the blockchain, which is relevant to L2 news. He established a clear policy for L2 scaling networks in an X post on September 12, indicating that only those who achieve “Stage 1” in decentralization will receive his endorsement and public support. The implementation of this new regulation is scheduled for 2025.
He emphasized projects in which he has personal ties or investments, asserting that it will not alter his stance. Buterin included the phrase “Stage 1 or nothing” in the update. This Stage 1 incorporates critical components, including a multi-signature setup overseen by an external authority and a secure council and fraud or validity proofs. These are all aimed at facilitating the transition of L2 networks to decentralization.
This rigorous decision underscores Ethereum’s vision for a secure and decentralized future. In response to the Ethereum co-founder’s statement, several zero-knowledge rollup teams have adjusted to achieve this objective by late 2024.