Ethereum Layer 2 Protocols Witnessing Increase in Transaction

Ethereum Layer 2 Protocols Witnessing Increase in Transaction
  • Arbitrum and Optimism set new all-time highs on transactions in September.
  • Ethereum (ETH) decreased by over 20% in the previous month.

The Layer 2 Ethereum-based protocols Arbitrum and Optimism Transaction volume have steadily increased. In September, the total number of transactions for both protocols reached new records. Arbitrum and Optimism are the two most popular Ethereum Layer 2 protocols with a 50% and 30% market share.

The significant difference between the two protocols is that Arbitrum has no governance token. The number of transactions on Optimism started to increase before the governance token introduction. When the coin officially went online across exchanges on May 31, the protocol then experienced a rise.

Both platforms have had a consistent increase in transactions and have maintained their upward trend. With over a 50% market share, Arbitrum now has the greatest Total Value Locked (TVL) of any Layer 2 network. According to L2Beat, optimism has a market share of about 30%.

Transaction count (Source: The Block)

Ethereum (ETH) Performance

Following the down on October 13 to the $1200 level, Ethereum (ETH) saw a price increase on October 14 that $1336. But currently, ETH traded at $1294 with a price surge of 2% in the last 24 hours, as per CoinMarketCap

In the global cryptocurrency, Ethereum has a market share of over 17%. At the time of writing, ETH holds a daily trending volume of $10,735,453,199 and has a market cap of $158,815,287,159. However, Ethereum’s price decreased by around 20% in the previous month. Also, ETH is down by more than 73% from its all-time high of $4,891.70.

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