the rise of layer 2 networks

In the dynamic crypto landscape, Arbitrum has kept pace with Ethereum, executing 375.3 million transactions in 2023, solidifying its position in the Layer 2 network revolution.

Let’s see all the details of CoinGecko’s new 2023 cryptocurrency report in the article. 

Crypto Arbitrum challenges Ethereum mainnet with 375.3 million transactions

As anticipated, according to the new CoinGecko report, last year the Arbitrum crypto handled 375.3 million transactions, almost on par with the 383.1 million on the Ethereum mainnet.

More generally, in 2023, Layer 2 networks have totaled over 1.31 billion transactions, of which precisely 375.3 million on Arbitrum, constituting 28.6% of L2 transactions on Ethereum.

Arbitrum has accounted for over a third (37.5%) of transactions on Ethereum Layer 2, excluding opBNB.

This system has also almost matched the number of transactions of the Ethereum mainnet, which recorded 383.1 million transactions in 2023. 

In the fourth quarter, transactions on L2 grew by 93.8%, reaching 659.0 million compared to the previous quarter’s 340.0 million.

The significant increase is mainly attributable to opBNB, with 304.8 million transactions (47.6%) in the fourth quarter, mainly due to an increase in registrations. In fact, in December alone, the network recorded several days with over 20 million transactions.

In addition to these remarkable achievements for Arbitrum, the CoinGecko report also provides valuable information on the 2023 performance of Bitcoin, Solana, NFT, and more.

The beginning of 2024 for Arbitrum: increase in DEX volume and historical TVL 

The level 2 network, Arbitrum, built on the Ethereum blockchain, has started the new year with a strong performance. The platform has indeed shown significant increases both in trading volume and in the valuation of its native token, ARB.

According to on-chain data from DeFiLlama, the volume of decentralized exchanges (DEX) on Arbitrum has surpassed other blockchains, including names like Binance Smart Chain, Solana, and Polygon, in the last week.

Surprisingly, on January 5th, the DEX volume on Arbitrum briefly surpassed that of the Ethereum mainnet, reaching a remarkable milestone.

This success can be mainly attributed to the increase in cryptocurrency investors who take advantage of the network’s affordable transaction fees. 

According to the data from L2Fees, Arbitrum is one of the cheapest networks for transactions, with an average fee of 0.26 dollars, unlike the Ethereum network with an average fee of over 5 dollars.

This could explain the significant increase in trading volume on Arbitrum DEXs.

Furthermore, the on-chain data from L2Beat indicates that Arbitrum is among the top three layer 2 networks based on Ethereum, with an average of 12.85 daily transactions. 

The increase in DEX volume and intensified network activities have generated a peak in the total value locked (TVL) within the blockchain. 

Since the beginning of the year, the blockchain has recorded a net positive flow of over 250 million dollars. This has brought Arbitrum’s TVL to an impressive all-time high of 2.64 billion dollars on January 12th.

Despite its remarkable success, the ARB token of Arbitrum has suffered a significant impact due to the recent downturn in the cryptocurrency market. Specifically, it has experienced a decrease of about 10% and is currently positioned at approximately $2.13.

Brief focus on the price of Arbitrum and the upcoming airdrop 

Currently, the price of Arbitrum (ARB) is around $2.08, with a trading volume of $576,853,819.67 in the last 24 hours. This represents a decrease of 3.32% in prices over the course of one day. 

However, during the same period, there has been an increase of 3.94%, particularly in the last seven days. The market capitalization of Arbitrum is $2,655,026,574, with a circulating supply of 1.3 billion ARB.

We see that Arbitrum is currently conducting an airdrop of its native token, ARB, targeting users who have previously used specific Ethereum-based applications. 

The goal is to encourage users to explore the Arbitrum network and promote the adoption of the protocol.

Users interested in participating in the airdrop must meet certain criteria.

Among these, creating a bridge in Arbitrum One or Arbitrum Nova, conducting transactions in different months, executing a series of transactions with various smart contracts, and making transactions with a cumulative value exceeding a certain threshold in dollars.

Despite the recent decrease of 3.32% in prices, Arbitrum (ARB) has recorded a 3.90% increase in the last seven days, surpassing the global cryptocurrency market decline of -5.20%. 

However, it has shown a slight underperformance compared to similar cryptocurrencies in the Ethereum ecosystem, which have recorded an increase of 12.70%.