Ethereum [ETH] L2s are experiencing a resurgence after overcoming June’s bottoms. Arbitrum is heading this charge after accomplishing its latest milestone.
Daily transactions on the Arbitrum network have hit an all-time high recently after the launch of the Nitro upgrade in September. According to the latest data, transactions reached just under 350,000 on 5 September on Arbitrum.
Source: Arbiscan.io
Users are claiming this feat is down to the Nitro upgrade which guarantees safety and progress for the L2 chain. The upgrade is also expected to improve node lifecycle management on the network.
Anonymous crypto enthusiast CryptoDoctor also claimed that Arbitrum users are seeing cheaper ETH transactions and swap fees. One Arbitrum user also confirmed the lower fees in a tweet.
wow first use of @arbitrum after the nitro upgrade, sushiswap fee was .20c~ before and now only 0.05c . amazing team @OffchainLabs pic.twitter.com/llczcfL6nD
— 11.smol bersezk (💙,🧡) (@Ilovenftt) September 4, 2022
ARB season is in the works
Arbitrum also managed the largest market share of TVL among L2s. According to l2beat.com, Arbitrum held over $2.75 billion in TVL with a 51.58% market share among other major L2s.
The closest competitor stands to be Optimism with $1.55 billion locked in at a 29.05% market share. What happens to be more surprising is that Arbitrum does not even have a native token, unlike other competitors.
These overwhelming statistics have compelled the crypto community to wonder if the Arbitrum Season is well underway.
Source: l2beat.io
When the curtains fall
Arbitrum’s latest feat should not come as a surprise as it has been heavily building the network in recent weeks. The developers also carried out the shadow-fork migration to Arbitrum One recently.
Furthermore, it is important to note that other L2 solutions are also gaining pace. In fact, TVL across L2 platforms went up by 130% (in ETH terms) since the beginning of this year. However, this list continues to get dominated by Arbitrum and Optimism.
Since the arrival of the OP rewards, users in early August managed to double Optimism’s TVL from $600 million to almost $1.2 billion.
However, it was noted that growth on Optimism was primarily aided by the rewards; making it an “inorganic growth” unlike Arbitrum which offers no such incentives.
Evidently, the stage is well set for Arbitrum to build on from here. Who knows we may as well observe an ARB Season ahead of us in 2022.
Source: https://ambcrypto.com/arbitrums-latest-milestone-has-a-lot-to-do-with-this-upgrade/