- dApps have increased migration to Layer 2 networks.
- Arbitrum continues to lead as a Tier 2 network with the highest TVL
Gas fees spent by Layer 2 (L2) Ethereum Scaling Solutions to identify proof of Ethereum have reached record levels as decentralized applications (dApps) integrated into Layer 1 networks drive migration to L2s, a new report from mesari show up.
L2 networks are separate blockchains that extend the features of the Ethereum network and inherit Ethereum’s security guarantees. Transactions are made on these L2s and then pooled to the base layer, Ethereum.
To locate evidence of these bulk transactions on Ethereum, L2s must pay a gas fee to secure the network.
As more applications and their users migrate to L2s, increasing the number of transactions processed and aggregated, the amount paid as gas fees to solve L2s samples has also risen to an all-time high.
For example, in September, Open Market pioneered NFTs more dangerous Support for the L2 Arbitrum network command. In the same month, cryptocurrency trading platform Matcha, has been confirmed Its prevalence is in the Arbitrum. Similarly in October, Ethereum led [ETH] Lido financial investment platform more dangerous Launching on two L2 networks, Arbitrum and Optimism.
Arbitrum takes the lead
According to data from L2Beat, with a total value locked (TVL) of $2.30 billion, Arbitrum ranks as the best L2 platform on the market today.
Messari found that due to the Nitro update released in August, Arbitrum “can support 7-10 times higher throughput and has advanced compression technologies that enable cheaper transactions, and attract more activity.”
This upgrade significantly increased the number of daily transactions processed on the L2 network.
In addition, as the unexpected FTX crash eroded investor confidence in centralized cryptocurrency exchanges, many investors moved to decentralized exchanges.
This has contributed to Arbitrum’s growth over the past month, as GMX, “a decentralized exchange (DEX) for Arbitrum’s original perpetual and Avalanche, saw a significant increase in volume during the FTX fiasco,” Messari reported.
On November 7, GMX recorded marginal trading volume of $5 billion, up 75% from the previous day.
After FTX’s implosion, DEX tokens outperformed CEX tokens over the past week:
Delphi_Digital November 17, 2022
Not far behind
Optimism has also benefited from the increased migration of dApps to L2 in recent months. Messari found that in the past three months, the number of transaction addresses in the network increased by 120%.
According to data from Etherscan, the network saw the highest number of daily transactions (499,720) on November 9 at the height of the FTX saga.