{"id":622,"date":"2021-12-26T12:51:27","date_gmt":"2021-12-26T12:51:27","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=622"},"modified":"2021-12-26T12:51:28","modified_gmt":"2021-12-26T12:51:28","slug":"3-reasons-why-arbitrum-tvl-leads-in-ethereum-layer-2","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=622","title":{"rendered":"3 reasons why Arbitrum TVL leads in Ethereum layer 2"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Arbitrum, one of Ethereum\u2019s Layer 2 networks, has gained significant attention from crypto users and developers since its launch. According to Footprint Analytics, Arbitrum has contributed 41.88% of all Layer 2 TVL, totaling $2.25 billion as of Dec. 8. Arbitrum is now the leading player of all Layer 2 networks.<\/p>\n<p><i>Data Source: Footprint Analytics \u2013 <\/i><i>\u00a0TVL Share by Layer 2<\/i><\/p>\n<p>Arbitrum launched its main network on Sept. 1, 2021, which seems late compared to other Layer 2 networks. Despite this, Arbitrum\u2019s TVL quickly overtook other projects, exceeding expectations.<\/p>\n<p><i>Data Source: Footprint Analytics \u2013 <\/i><i>Layer 2 TVL Growth Trending<\/i><\/p>\n<p>What makes Arbitrum stand out from the crowd?<\/p>\n<h2>Reason 1: Low technology migration costs<\/h2>\n<p>Arbitrum\u2019s Optimistic rollups solution is more popular with developers in the short term than the more technically complex ZK rollups solution. In the long term, however, ZK rollups\u2019 network may have the potential to catch up thanks to its faster speed and stronger security.<\/p>\n<h2>Reason 2: Low Gas fee cost<\/h2>\n<p>Arbitrum processes 40,000 transaction requests per second, much larger than Ethereum\u2019s 15-30 requests, greatly reducing network congestion, increasing speed and reducing transaction costs. According to external data, Arbitrum\u2019s transaction cost is 1.8 Gwei compared to Ethereum\u2019s 64 Gwei, nearly 36 times that of Arbitrum.<\/p>\n<h2>Reason 3: A more open ecosystem<\/h2>\n<p>Many people may ask why the Optimistic network, which also uses the Optimistic rollups solution, is not as good as Arbitrum. Arbitrum\u2019s launch strategy onboarded more than 400 DeFi projects before it opened to the public, and dozens of projects were already online at the same time at the start of its launch. This allowed users to complete a variety of operations in its ecosystem. Optimistic, on the other hand, uses a whitelisting mechanism, so that only whitelisted projects can be deployed on its main network.<\/p>\n<p>Because of Arbitrum\u2019s open deployment mechanism, it was not the head DeFi protocol that made Arbitrum famous, but rather the various \u201cdegen\u201d investments\u2014those offering unscrupulously high returns.<\/p>\n<p>Arbitrum\u2019s initial TVL growth is largely due to ArbiNYAN, which attracts investors to stake their native tokens with returns of 1000%-plus. These projects, while not always legitimate, allowed the new ecosystem to emerge.<\/p>\n<h2>Introduction to the Arbitrum ecosystem<\/h2>\n<p>Arbitrum has just 44 live projects, which is not particularly large. Among them, the DeFi category is dominated by DEX, lending and asset categories.<\/p>\n<p>Of these, DEX accounts for 56% of TVL, assets for 18% and lending for 17.8%.<\/p>\n<p><i>Data Source: Footprint Analytics \u2013 <\/i><i>TVL Share of Category On Arbitrum\u00a0<\/i><\/p>\n<p>Looking at the TVL ranking of DeFi projects, degen projects are no longer in the top 5, with mainstream projects rising to the top. Curve is in first place with a TVL of $420 million.<\/p>\n<p>Data Source: Footprint Analytics \u2013 Top 5 DeFi Protocols on Arbitrum<\/p>\n<h2>Conclusion<\/h2>\n<p>Arbitrum, a key player in the expansion of Ethereum, is already attracting a lot of capital attention, with $124 million in Series A and B funding and a valuation of $1.2 billion. Arbitrum is not currently in a cryptocurrency launch, and the co-founder of its development team, Offchain Labs, has stated that there are no plans to launch a cryptocurrency in the near future.<\/p>\n<p>Arbitrum is still in its early stages and we expect it to continue to enrich its ecosystem and attract more developers and investors.<\/p>\n<p class=\"p1\"><em>This report was brought to you by Footprint Analytics.<\/em><\/p>\n<h2>What is Footprint<\/h2>\n<p>Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and discover insights. It cleans and integrates on-chain data so users of any experience level can quickly start researching tokens, projects and protocols. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can build their own customized charts in minutes. Uncover blockchain data and invest smarter with Footprint.<\/p>\n<p>Posted In: Ethereum, Technology <\/p>\n<p><h2>CryptoSlate Newsletter<\/h2>\n<\/p>\n<p>Featuring a summary of the most important daily stories in the world of crypto, DeFi, NFTs and more.<\/p>\n<h2>Get an edge on the cryptoasset market<\/h2>\n<p>Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/3-reasons-why-arbitrum-tvl-leads-in-ethereum-layer-2\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arbitrum, one of Ethereum\u2019s Layer 2 networks, has gained significant attention from crypto users and developers since its launch. According to Footprint Analytics, Arbitrum has contributed 41.88% of all Layer 2 TVL, totaling $2.25 billion as of Dec. 8. Arbitrum is now the leading player of all Layer 2 networks. Data Source: Footprint Analytics \u2013 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":623,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-622","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=622"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/622\/revisions"}],"predecessor-version":[{"id":624,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/622\/revisions\/624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/623"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}