Author: [email protected], data source: Arbitrum One & Arbitrum Nova Dashboard
In March 2023, we took a deep dive into the gaming world of Arbitrum One. In the year since, we’ve seen Arbitrum’s total value locked (TVL) double and the market cap of its native token, $ARB, increase by 70%. Now that $ARB has reached its anniversary, it’s a perfect time to re-evaluate the state of the Arbitrum ecosystem.
Arbitrum is a Layer 2 solution, mainly including Arbitrum One and Arbitrum Nova, which scales Ethereum by increasing transaction throughput and reducing transaction fees.
Arbitrum One in 2021 It was officially launched on August 31, 2018, and shines in the Layer 2 field with its innovative Optimistic Rollup technology. It achieves seamless integration with Ethereum Layer 1 through the Arbitrum Rollup protocol and uses Nitro technology to develop efficient and Ethereum-level dApps. Arbitrum One dominates rollup solutions, accounting for approximately 47% of the TVL market share, according to Footprint Analytics.
Arbitrum Nova in 2022 Officially launched on August 9, 2018, as a high-performance choice in the Arbitrum ecosystem, it focuses on meeting the needs of applications that have higher requirements for speed and cost efficiency. Different from the trustless framework of Arbitrum One, Nova adopts the AnyTrust protocol and exists in the form of AnyTrust Optimium. Its characteristic is that the transaction data is not uploaded to the chain.
Arbitrum One aims to provide a scalable, cost-effective platform for general-purpose scenarios to deploy Ethereum-compatible smart contracts; while Arbitrum Nova serves those who require high transaction throughput but are Application scenarios that do not require Rollups to be completely decentralized.
Arbitrum is built by Offchain Labs. The company was founded in Princeton, has strong support from venture capital, and has a long history in the blockchain industry. He has been deeply engaged in the field of chain R&D for more than five years. The company's co-founder and chief scientist, Ed Felten, is a distinguished computer science professor and former White House deputy chief technology officer. The Offchain Labs team's profound knowledge in the fields of computer science, blockchain technology and cryptography has laid a solid foundation for Arbitrum's development.
With the Nitro upgrade, Arbitrum has successfully achieved full compatibility with the Ethereum Virtual Machine (EVM), which makes it possible to The process of migrating to Layer 2 smart contracts has become extremely simple, with almost no adjustments required. Not only that, Arbitrum is also the first to implement the first stage of decentralization in EVM Rollup technology. Its solid code foundation laid the foundation for multiple subsequent Ethereum Layer 2 solutions, such as Kinto, Parallel, HYCHAIN, and Frame.
This article will provide an in-depth analysis of Arbitrum One’s data performance and explore the factors behind its leadership in the Ethereum Layer 2 field.
Total value locked (TVL)
Total Value Locked (TVL) is a key metric for measuring blockchain adoption at scale. According to data from Footprint Analytics' Arbitrum One dashboard, even during a period of bearish sentiment in the overall market, Arbitrum One's TVL has achieved astonishing growth over the past year, doubling from US$1.5 billion to US$4 billion. Striking.
Data source: DeFi and GameFi data - Arbitrum One & Arbitrum Nova Dashboard
Data on March 23 shows that DEX, lending and rehypothecation became the main areas driving Arbitrum One TVL growth, while GMX, Pendle and Uniswap V3 stood out as the leading protocols. Notably, Pendle has achieved TVL growth of 44.4% in the past 30 days, according to the latest TVL rankings.
Data source: DeFi project TVL ranking - Arbitrum One & Arbitrum Nova Dashboard
On-chain address
As of March 23, within the past 30 days , Arbitrum One completed a total of 37.49 million transactions and attracted 2.95 million active addresses to participate. 42.8% of these active addresses are new addresses interacting with Arbitrum for the first time.
Data source: on-chain transaction data - Arbitrum One & Arbitrum Nova Dashboard
Transaction Fees
As Ethereum’s Dencun upgrade completes, Arbitrum One The average transaction fees have changed significantly. Specifically, there was a significant drop from 0.00015 ETH/transaction on March 13 to 0.0000028 ETH/transaction on March 23, a drop of up to 98.1%. This significant cost reduction has played a key role in lowering Ethereum network fees, thereby driving its wider adoption and acceptance.
Data source: on-chain transaction data - Arbitrum One & Arbitrum Nova Dashboard
$ARB: Price, Volume, Market Cap
$ARB in 2023 Launched in March 2020, its price has experienced fluctuations throughout the year, showing an upward trend in the first quarter of 2024. However, Arbitrum announced on March 16 that it would unlock 1.1 billion $ARB tokens, accounting for 87.2% of the circulating supply, causing its price to fall from $2.18 on March 8 to a low of $1.62 on March 19. At the same time, $ARB’s trading volume closely followed the price movement, showing a similar trend.
Data source: Arbitrum token price, trading volume - Arbitrum One & Arbitrum Nova Dashboard
As of March 23, $ARB's market capitalization reached $4.3 billion. Due to the above-mentioned token unlocking event, the circulation of $ARB increased and its market value increased significantly.
Data source: Token market capitalization - Arbitrum One & Arbitrum Nova Dashboard
Simplified In short, the reason why Arbitrum One ranks first in the Ethereum Layer 2 field is because it has excellent EVM compatibility, advanced decentralization technology, deep computer science and blockchain expertise, and extremely low transaction costs. cost. These factors together constitute Arbitrum One's strong competitiveness, making it stand out in the fierce competition.
Data source: Single wallet address tracking - Arbitrum One & Arbitrum Nova Dashboard
The reference data module provides core basic data about Arbitrum One and Arbitrum Nova, which are the cornerstones for in-depth analysis and research.
Data source: Single coin analysis - Arbitrum One & Arbitrum Nova Dashboard
An in-depth analysis of Arbitrum’s secret of success reveals that its technological innovation, market positioning and outstanding contribution to the blockchain ecosystem have jointly created its leading position in the Ethereum Layer 2 field.
The Layer 2-centric Ethereum ecosystem is inherently more diverse and more naturally lends itself to more diverse design approaches to scaling, virtual machine design, and other technical features.
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