Ethereum Layer2’s Lock-up Volume Drops Slightly: Arbitrum One and Optimism Lead the Way

03/05/2023 00:21 • Metaverse Matters • 135 views

According to reports, L2BEAT data showed that the total lock-up volume on Ethereum Layer2 was US $6.190 billion, down 0.90% in the past 7 days. Among them, the largest amount of lock-in is the expansion plan Arbitrum One, which is about $3.36 billion, accounting for 54.29%, followed by Optimism, which is $1.877 billion, accounting for 30.32%.

The total lock-up volume of Ethereum Layer 2 was $6.190 billion

Interpret the above information:

Ethereum Layer2, also known as the second layer or scaling solution, is designed to increase the transaction processing capacity and reduce fees on the Ethereum network. The layer2 technology enables off-chain computations and transactions, reducing the load on the Ethereum mainnet. As a result, more transactions can be processed quickly and cheaply, making it easier for users to interact with decentralized applications (dApps) on Ethereum.

The recent data from L2BEAT reveals that the total lock-up volume on Ethereum Layer2 was US $6.190 billion, which is a slight decrease of 0.9% in the past 7 days. Lock-up volume refers to the amount of cryptocurrency that is deposited in a smart contract on the Layer2 network, which is used to secure and validate transactions.

The data indicates that two Layer2 projects, Arbitrum One and Optimism, are leading the pack in terms of lock-up volume. Arbitrum One has the largest amount of lock-in at about $3.36 billion, which accounts for 54.29% of the total lock-up volume on Ethereum Layer2. Optimism comes in second with $1.877 billion, accounting for 30.32%.

Arbitrum One is an Ethereum-native rollup technology that allows developers to deploy smart contracts and dApps on Layer2 with full Ethereum compatibility. It is built by Offchain Labs and aims to provide a faster, cheaper, and more efficient alternative to the Ethereum mainnet. The significant amount of lock-in on Arbitrum One indicates that its community and developers have confidence in its ability to deliver on its promises.

Optimism, on the other hand, is a more established Layer2 solution that has been in development for several years. It uses Optimistic Rollups, a scaling technique that relies on fraud-proof technology and requires less data storage than other rollup solutions. Optimism is aimed at enhancing user experience on Ethereum by reducing gas fees and speeding up transactions. Its large lock-up volume is an indication of its popularity among developers and users who are looking for faster and cheaper ways to interact with Ethereum.

In conclusion, the slight decrease in the total lock-up volume on Ethereum Layer2 is a reflection of the market’s volatility. However, the dominance of Arbitrum One and Optimism in terms of lock-up volume is an indication that Layer2 solutions are gaining more attention and adoption from Ethereum users and developers. As Ethereum continues to transition to proof of stake and upgrade its infrastructure, Layer2 solutions are expected to play an increasingly crucial role in the network’s success.

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Ethereum Layer2’s Lock-up Volume Drops Slightly: Arbitrum One and Optimism Lead the Way

The total lock-up volume of Ethereum Layer 2 was $6.190 billion

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