Ethereum Benefits As A Layer 2 Solution Optimism and Arbitrum Compete Fiercely
Ethereum has a number of different Layer 2 (L2) protocols and solutions that work for different purposes. So there is always a certain amount of competition on the web. Those bitter confrontations were shaken with the arrival of Arbitrum as the project skyrocketed in a matter of days. But now it looks like his old rival Optimism is back and certainly intends to usurp the throne.
Arbitrum vs. Optimism
Arbitrum saw phenomenal growth last month. The rally began on August 31, 2021, from a zero round to the most successful development on Ethereum. To date, however, the Total Value (TVL) of Arbitrum is only $ 1.8 billion. And in October this growth begins to slow down and its lead is now threatened by Optimisim.
TVL by Arbitrum | Source: L2beat
In the past week, a flood of new investors joined the Optimisim network. This staggering increase has brought the daily number of wallets to a record 4,700, 135% higher than Arbitrum’s current average of 2,000 wallets per day. As a result, Optimisim is gradually closing the 19,000 wallet gap and taking the top spot of Arbitrum’s 200,000+ wallets.
The growing number of addresses from Optimisim | Source: Coin98
However, Arbitrum saw not only a decline in participation but also in network utility. Arbitrum’s trading volume has dropped to just under 15,000 from 270,000 at its peak in August. This number is smaller than Optimisim.
Optimisim has higher daily offers | Source: Coin98
Will Ethereum benefit from this?
In fact, ETH will benefit. Optimisim’s growth will make it easier for both investors and developers, attracting many of them, and thus benefiting Ethereum as a whole. With the OVM 2.0 upgrade, Optimisim will make some long-awaited changes.
Currently, operation on OVM (Optimistic Virtual Machine) can cost ten times the gas costs on L1 Ethereum. As the network prepares for the October 14th testnet release and the October 28th mainnet release, investors also see the potential and join the bullish bias. This is the time for Optimisim to break through.
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According to Ambcrypto