Arbitrum is already responsible for 62% of all Ethereum transactions

Layer 2 solutions are becoming more and more popular in the crypto industry.

Arbitrum is an ETH network scaling Layer 2 solution that enhances Ethereum's smart contract capabilities, increases transaction speed and overall scalability, and most importantly, helps Ethereum users avoid high network charges. This protocol provides a number of additional privacy protection functions at the same time. Arbitrum has experienced an intense increase in activity since it rolled out its network update in August 2022.

Arbitum becomes a key player

The news buzz around this popular project caused the total value of digital assets blocked on the Arbitrum (TVL) network to increase by as much as 13 percent over the past month. This has led to a situation where TVL on the Arbitrum network is now worth $ 1.05 billion, surpassing Ethereum's rival Solana. It is worth adding here that Arbitrum is currently ahead of another player operating on this market, namely Optimism, which until recently was the most popular second layer solution for the Ethereum network.

Research firm Delphi Digital also reported that the volume of transactions in the Arbitrum ecosystem has increased by more than 550 percent since the launch of the Nitro network update in August this year. This means that the share of this project in the total number of all transactions that are processed on Ethereum is already 62 percent. Interestingly, before the last update, Arbitrum only handled 9 percent of Ethereum activity.

Numerous cryptocurrency market experts report that this growth coincided with a significant increase in unique wallet addresses, reaching over 1.66 million for the first time.

The increase in Arbitrum can be attributed in part to the Nitro update, which introduced lower fees, increased capacity, and smoother development.

Delphi Digital also believes that most of this activity probably comes from speculators who are currently trying to increase their activity on the Arbitrum network in the hope of receiving more airdrop rewards.

The team behind the Arbitrum project has, to this day, not created its own native token, but Steven Goldfeder, co-founder of Arbitrum developer Offchain Labs, has suggested that airdrop could eventually occur.