March 2024, <a href="https://www.linkedin.com/in/stellalhr/" rel="noopener noreferrer nofollow">stella&#64;footprint.network</a>Data Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Arbitrum One &amp; Arbitrum Nova Dashboard</a>In March 2023, we delved into the <a href="https://www.footprint.network/article/web3-gaming-game-analytics-on-arbitrum-5MhH5FnH" rel="noopener noreferrer nofollow">gaming sector of Arbitrum One</a> and saw its TVL double and its native token, $ARB, surge 70% in market cap within a year. Now, one year after the launch of $ARB, it’s the perfect moment to re-examine the evolving Arbitrum ecosystem.What is Arbitrum?Arbitrum networks operate as Layer 2 solutions, including Arbitrum One and Arbitrum Nova, enhancing the Ethereum blockchain by improving scalability and decreasing transaction fees.<ul><li>Arbitrum One</li></ul>Launched publicly on August 31, 2021, Arbitrum One stands out in the Layer 2 space with its innovative optimistic rollup technology. Utilizing the Arbitrum Rollup protocol for seamless Ethereum Layer 1 integration, it enables the development of efficient dApps with the security level of Ethereum, thanks to its Nitro technology. This has positioned Arbitrum One as a leader among rollup solutions, holding roughly 47% of the TVL market share, as per <a href="https://www.footprint.network/public/research/chain/chain-ecosystem/layer-2-overview?%253E%253D_date-84008&#61;2023-08-01&amp;single_date-86180&#61;2024-03-15&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Footprint Analytics</a>.<ul><li>Arbitrum Nova</li></ul>Arbitrum Nova, launched on August 9, 2022, serves as a high-performance alternative within the Arbitrum ecosystem, focusing on applications that prioritize speed and cost-efficiency. Diverging from Arbitrum One’s fully trustless framework, Nova employs the AnyTrust protocol. Arbitrum Nova is an AnyTrust Optimium, differing from Arbitrum One by not posting transaction data onchain.Arbitrum One offers a scalable, cost-effective platform for Ethereum-compatible smart contracts, aimed at general use, while Arbitrum Nova caters to applications needing higher transaction throughput without the full decentralization of rollups.The Team behind ArbitrumThe Arbitrum networks were developed by Offchain Labs, a company with roots in Princeton and venture backing, boasting over five years in blockchain research and development. Leading its creation is Ed Felten, Co-Founder &amp; Chief Scientist, a computer science professor and former White House Deputy Chief Technology Officer. The team’s expertise in computer science, blockchain technology, and cryptography was pivotal in developing the Arbitrum.Data Insights of Arbitrum OneWith the Nitro upgrade, Arbitrum attained full Ethereum Virtual Machine (EVM) compatibility, simplifying the migration of smart contracts from Ethereum to Layer 2 with little to no adjustments needed. Furthermore, Arbitrum was the first EVM rollup technology to achieve <a href="https://ethereum-magicians.org/t/proposed-milestones-for-rollups-taking-off-training-wheels/11571" rel="noopener noreferrer nofollow">Stage 1</a> decentralization. Its robust code base has laid the foundation for several Ethereum Layer 2 solutions, such as Kinto, Parallel, HYCHAIN, and Frame.This article will focus on the data insights of Arbitrum One, and try to uncover the factors behind its leadership position in the Ethereum Layer 2 arena.<ul><li>TVL</li></ul>Total Value Locked (TVL) is a crucial indicator of blockchain adoption. According to Footprint Analytics’ <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Arbitrum One dashboard</a>, its TVL impressively doubled from $1.5 billion to $4.0 billion over the past year, even amidst a period dominated by bearish market sentiment.<img src="https://miro.medium.com/v2/resize:fit:700/0*pNi26q8yCDlbnw4C" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">DeFi and GameFi Data — Arbitrum One &amp; Arbitrum Nova Dashboard</a>On March 23, the primary sectors driving Arbitrum One’s TVL were DEX, lending, and restaking, with GMX, Pendle, and Uniswap V3 standing out as the leading protocols. Notably, within this snapshot, Pendle recorded a remarkable 44.4% increase in TVL over the past 30 days, according to the latest <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">TVL rankings</a>.<img src="https://miro.medium.com/v2/resize:fit:700/0*7LDdE7gObO91L-m0" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">DeFi Project TVL Ranking — Arbitrum One &amp; Arbitrum Nova Dashboard</a><ul><li>Addresses</li></ul>As of March 23, over the past 30 days, Arbitrum One has seen 37.5 million transactions and 3.0 million active addresses, with 42.8% of these addresses being new to the chain.<img src="https://miro.medium.com/v2/resize:fit:700/0*CS2lH29gCLyaf4U6" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Transaction Data — Arbitrum One &amp; Arbitrum Nova Dashboard</a><ul><li>Transactions Cost</li></ul>Following Ethereum’s Dencun Upgrade, Arbitrum One’s average transaction fee dramatically fell from 0.00015 ETH on March 13 to 0.0000028 ETH by March 23, marking a 98.1% reduction. This significant drop in cost has been instrumental in lowering network fees on Ethereum, thereby fostering wider adoption.<img src="https://miro.medium.com/v2/resize:fit:700/0*TtY3N6spu8UuYZru" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Transaction Data — Arbitrum One &amp; Arbitrum Nova Dashboard</a><ul><li>$ARB: Price, Trading Volume, Market Cap</li></ul>Launched in March 2023, the price of $ARB experienced fluctuations throughout the year, with an uptrend observed in Q1 2024. However, the announcement that 1.1 billion $ARB tokens, representing 87.2% of the circulating supply, would be unlocked on March 16 led to a decrease in its price from $2.18 on March 8 to its lowest point of $1.62 on March 19. Concurrently, the trading volume of $ARB mirrored this price trajectory.<img src="https://miro.medium.com/v2/resize:fit:700/0*cAAFvlC52RZlnszm" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Arbitrum Token Price &amp; Trading Volume — Arbitrum One &amp; Arbitrum Nova Dashboard</a>As of March 23, the market cap of $ARB reached $4.3 billion, marking a notable increase following the aforementioned $ARB emission event.<img src="https://miro.medium.com/v2/resize:fit:700/0*MwMFTMEitBgMKM-Z" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Token Market Cap- Arbitrum One &amp; Arbitrum Nova Dashboard</a>In a word, Arbitrum One leads the Ethereum Layer 2 field, attributed to its EVM compatibility, advanced decentralization, strong foundation in computer science and blockchain expertise, alongside notably low transaction fees.Discover More Data InsightsIn addition to the insights already discussed, Footprint Analytics extends its offerings to include wallet profiles, detailed reference data, and an in-depth single token analysis tool.The wallet profile feature introduces a comprehensive <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">wallet tracker</a>, enabling detailed examination of transactions, gas fees, and protocol interactions for any specific address. This tool is invaluable for users looking to closely monitor their wallet activity or track significant movements within the ecosystem, often referred to as “whale watching.”<img src="https://miro.medium.com/v2/resize:fit:700/0*qxvnc5_d1dBx8bVS" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Single Wallet Tracker- Arbitrum One &amp; Arbitrum Nova Dashboard</a>The <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">reference data</a> segment offers essential foundational data on both Arbitrum One and Arbitrum Nova, serving as a cornerstone for in-depth, analytical research.Furthermore, the <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Single Token Explorer</a> stands out by offering exhaustive data on individual tokens on Arbitrum. From real-time price fluctuations, supply metrics, and market cap to trading volumes, holder distributions, and DEX transactions, this tool equips users with everything needed to conduct a thorough analysis of any token. Such comprehensive information is particularly beneficial for investors and developers seeking to gauge token performance, identify trends, and uncover opportunities within the Arbitrum space.<img src="https://miro.medium.com/v2/resize:fit:700/0*I7V1UAYzbTEen8Hj" />Source: <a href="https://www.footprint.network/&#64;Higi/Arbitrum-One-Arbitrum-Nova-Overview?chain&#61;Arbitrum&amp;series_date-85559&#61;2010-01-01%7E&amp;channel&#61;EN-651" rel="noopener noreferrer nofollow">Single Token Explorer — Arbitrum One &amp; Arbitrum Nova Dashboard</a>As we peel back the layers of Arbitrum’s success, it’s clear that its blend of technological innovation, strategic market positioning, and significant contributions to the blockchain ecosystem has cemented its status as a leader in the Ethereum Layer 2 space. The insights provided by Footprint Analytics paint a vivid picture of a platform that’s not just thriving but setting the pace for innovation and adoption in the decentralized world.____________________What is Footprint Analytics?<a href="https://www.footprint.network/" rel="noopener noreferrer nofollow">Footprint Analytics</a> is a blockchain data solutions provider. It leverages cutting-edge AI technology to help analysts, builders, and investors turn blockchain data and combine Web2 data into insights with accessible visualization tools and a powerful multi-chain API across 20&#43; chains for NFTs, GameFi, and DeFi.Footprint Analytics Website: <a href="https://www.footprint.network/" rel="noopener noreferrer nofollow">https://www.footprint.network</a>X / Twitter: <a href="https://twitter.com/Footprint_Data" rel="noopener noreferrer nofollow">https://twitter.com/Footprint_Data</a>Discord: <a href="https://discord.gg/3HYaR6USM7" rel="noopener noreferrer nofollow">https://discord.gg/3HYaR6USM7</a>Telegram: <a href="https://t.me/Footprint_Analytics" rel="noopener noreferrer nofollow">https://t.me/Footprint_Analytics</a>

Arbitrum: What Drives Its Leadership in Ethereum Layer 2s?

Footprint Analytics

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