Since The Merge, Ethereum’s on-chain fees have been considerably lower. However, the combined volume of transactions on the Arbitrum and Optimism layer two (L2) chains has surpassed the on-chain transaction output of Ethereum. On Saturday, January 14, 2023, Ethereum processed 1.10 million on-chain transactions, while combined transactions on Arbitrum and Optimism reached 1.32 million for the same day.
Rise of L2 Scaling Solutions Arbitrage and Optimism
On-chain transaction fees have dropped significantly since the first week of August 2022 and even more so since the blockchain transitioned from a Proof-of-Work (PoW) blockchain to a Proof-of-Stake (PoS) network. on September 15, 2022. .Data from etherscan.io gas tracker shows that the highest priority on-chain ether transaction costs approximately $0.75 or 23 gwei on Sunday afternoon at 5:00 PM ET.
According to data from Sunday, January 15, 2023, the average Decision the transaction costs about $0.101 per transfer, while a Optimism the transaction costs $0.1410 per transfer. L2 scaling solutions have become increasingly popular since 2020, with options like hermez polygon, zksync, bobaY star webin addition to Optimism and Arbitrum.
These solutions enable faster and cheaper transactions by reducing the computational workload on the main blockchain network (Ethereum), or layer one (L1). Arbitrum and Optimism transactions are periodically “rolled up” and registered to Ethereum using either an optimistic digest or an optimistic virtual machine. dune analysis Statistics show that both L2 networks, Arbitrum and Optimism, have seen a significant increase in daily transactions.
For example, Optimism recorded 737,191 transactions on January 14, and Arbitrum captured 586,745 transactions on the same day. Since January 10, 2023, the combined number of transactions on both Arbitrum and Optimism has exceeded the number of direct on-chain transfers on Ethereum. For example, on January 10, the combined transaction count for both L2 scale networks was around 1.12 million, while Ethereum processed 1.06 million on-chain transfers.
On January 14, 2023, according to data from Dune Analytics, the combined transaction count for both L2 networks was around 1.32 million transactions, compared to 1.10 million transactions settled on the Ethereum chain. Ethereum still processes a significant number of transactions per day compared to most blockchains. Since June 17, 2020, Ethereum has typically processed over a million transactions per day. However, some other crypto networks settle more transactions than Ethereum, such as XRP Y Polygon.
On January 14, Polygon recorded 3.10 million transactions and XRP saw 1.25 million transactions settled that day. While the L2 Arbitrum and Optimism chains alone have not outperformed Ethereum, XRPThe number of transactions per day for Polygon or Polygon has experienced a significant increase in the last 12 months.
For example, on January 15, 2022, Ethereum processed 1.17 million transactions that day, while Arbitrum processed 21,734 transfers per day, and Optimism processed 30,430 transactions per day. The data shows that over the past 12 months, Arbitrum’s daily transaction count has increased by 2,599%, and Optimism’s L2 scaling solution’s daily transfer count has increased by 2,322% since January 2022.
What impact do you think L2 scaling solutions will have on the future of blockchain technology and its adoption? Let us know your thoughts in the comments section below.
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