Ethereum

Arbitrum

Optimism

Source: Adobe / Rafael Henrique 
The Ethereum-based layer 2 network Arbitrum has shown significant strength in the market, with its native token, <a href="https://cryptonews.com/coins/arbitrum/">ARB</a>, outperforming a number of other smart contract tokens over the past 30 days. 
According to data from CoinMarketCap, ARB has now risen some 75% during the 30-day period, outperforming the likes of Optimism’s <a href="https://cryptonews.com/coins/optimism/">OP</a> token, Solana’s <a href="https://cryptonews.com/coins/sol-solana/">SOL</a>, and <a href="https://cryptonews.com/coins/binance-coin/">BNB</a>. 
One key factor contributing to Arbitrum’s strength is its dominance in terms of total value locked (TVL) among layer 2 networks built on top of Ethereum. 
According to <a href="https://l2beat.com/scaling/summary">data</a> from decentralized finance L2Beat, Arbitrum now has a market share of 49.17% among layer 2 networks, far surpassing number two on the list, Optimism Mainnet, with its 28.85% market share. Ranking of Ethereum Layer 2 networks by market share. Source: L2Beat 
The network has also seen a <a href="https://cryptonews.com/news/arbitrums-total-value-locked-surges-past-2-5-billion-as-token-nears-2.htm">consistent increase in its TVL</a> at least since October last year, rising about 50% from $1.66 billion in October to the current value of $2.51 billion, data from DeFi tracking site DefiLlama showed. Arbitrum network total value locked (TVL). Source: DeFiLlama 
The <a href="https://cryptonews.com/news/ethereums-upcoming-upgrade-cancun-deneb-set-to-begin-testing-on-january-17.htm">upcoming Ethereum Dencun upgrade</a>, incorporating changes proposed by EIP-4844, is expected to reduce rollup transaction costs, benefiting layer 2 solutions like Arbitrum by lowering gas fees and improving network capacity. 
<h2 id="bullish-chart-pattern-for-arbitrum">Bullish chart pattern for Arbitrum</h2> 
 Despite a recent pullback after reaching an all-time high of $2.11 on January 4, ARB’s daily chart reveals a potential bull flag formation. 
The bull flag is generally seen as a continuation pattern, with price expected to resume its previous bullish trend once it breaks out of the pattern. ARBUSD price chart with bull flag pattern. Source: TradingView 
At the time of writing on Wednesday, ARB traded at $1.95, up an impressive 11.7% for the past 24 hours and up 3% for the past 7 days.

Arbitrum Dominates with Nearly 50% of Ethereum Layer 2 Total Value Locked

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