Has Arbitrum gained the top spot in the L2 space? According to these factors…
According to a 20 February tweet by Wu Blockchain, Arbitrum‘s transaction volume had reached new heights, as the scaling solution’s transaction volume reached $2.62 billion and witnessed a 34% spike. If the trend continued, Arbitrum could go toe-to-toe with Ethereum [ETH] soon.
<p lang=«en» dir=«ltr» xml:lang=«en»>According to DeFiLlama, in the past week, the DEX transaction volume on the Arbitrum reached $2.62 billion, a YOY increase of 34%, setting a new weekly high, second only to Ethereum. Most of Arbitrum’s native application tokens have increased in the past 7 days.… https://t.co/WwWg0twWYA— Wu Blockchain (@WuBlockchain) February 20, 2023
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As can be observed from Dune Analytics’ data, the number of transactions on Arbitrum was on its way to match Ethereum’s transaction frequency.
Source: Dune Analytics
One reason for the growing number of transactions would be the declining transaction fees on the protocol. As the transaction fees of Arbitrum continued to decline, it would make it easier for users to make transactions on the protocol.
The high transaction volume also impacted the overall TVL collected by Arbitrum, which increased materially over the last few weeks. In terms of TVL, Arbitrum outperformed other L2 solutions, such as Polygon [MATIC] and Optimism [OP] as well.
Source: L2Beat
This surge in TVL also impacted the overall revenue generated by Arbitrum. According to Token Terminal’s data, the overall revenue generated by Arbitrum had increased by 80% over the last 30 days. This revenue can be used to improve the network and bring in new capabilities.
However, despite the growing revenue, the revenue wasn’t being used for the betterment of the protocol. This was signified by the
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