Ethereum layer 2 blockchain solutions Arbitrum and Optimism have both played a huge role in solving ETH’s scalability issues. However, the war between the networks is raging, and one shows some interesting insights. Take a look here –
battle of the gods
To be fair, both networks are killing each other as the battle for the throne intensifies.Just recently, analysts at Messari shared Some insights to discuss the same.
Here, Arbitrum uses a permissionless bridge for all tokens, while Optimism deploys a dedicated bridge based on market demand. Well, it looks like the demand for the latter has surged as the protocol’s network usage and TVL remain the same.
Optimism launches liquidity mining plan ( OP Rewards for Aave users) contribute to the above needs. According to Messari’s analysis, since the arrival of the OP reward, users managed to increase Optimism’s TVL from $600 million to nearly $1.2B in early August.
Source: Messari
Even at press time, Optimism’s daily volume and TVL had briefly spiked, but soon corrected as the metrics flattened out. However, it’s worth pointing out that fireworks have indeed been seen in the past following the aforementioned launch.
At the time of publication (around August 5th), Aave deposits on the Layer 2 network increased by 493%, according to Data from Defi Llama. Currently, Aave V3 on Optimism has nearly $415 million worth of assets locked in its smart contracts.At the same time, according to L2Beat datathe total value locked in the network, excluding its native OP token, has Appreciate 63% Since the launch of the OP token on May 31st.
However, at the time of this writing, Optimism’s network usage has indeed undergone significant adjustments. The reason for the drop was a flood of rumors that Optimism’s multi-signature wallet had been hacked. At the time of writing, it is trading at $1.o6, down 14% since the August 12 hacker scare.
natural and artificial
Yes, the protocol’s network usage and TVL are at similar baselines, but Arbitrum chose the natural path. The above analyst (@Chase Devens) also shared the same narrative, highlighting the key difference, viz. Arbitrum’s organic activities and Optimism’s motivational use.analyst express,
“The OP reward on Aave doubles Optimism TVL to align with Arbitrum, but Arbitrum still maintains double the number of transaction addresses without any incentives.”
Here is a diagram to support said narrative –
Source: Messari
Here, Arbitrum supports more active users than Optimism, although the latter has launched a different ecosystem initiative. However, the former is not far behind.
The Arbitrum network will undergo a major upgrade.This transition to Nitro will address some key issues and incorporate innovative features. This is a prominent development for the popular network, although it may not necessarily lead to a price increase.
