Arbitrum vs Optimism: A Look at Trading Volume in 2021
On April 23rd, Messari stated in a report that the average daily trading volume of Arbitrum from the beginning of the year to date is about 660000, more than twice that of Optimism
On April 23rd, Messari stated in a report that the average daily trading volume of Arbitrum from the beginning of the year to date is about 660000, more than twice that of Optimism.
Messari: The average daily trading volume of Arbitrum has exceeded 660000 since the beginning of the year, more than twice that of Optimism
The blockchain industry has seen a surge in popularity over the past few years, marked by the emergence of numerous decentralized applications (dApps) built on various blockchain networks. Ethereum, the leading smart contract platform, enabled the creation of hundreds of dApps blooming with a variety of use cases ranging from DeFi to gaming. However, the limitations of the Ethereum network, including slow transaction processing times and high gas fees, propelled the development of competing Layer 2 solutions aimed towards alleviating these constraints. Arbitrum and Optimism, two of the most popular Layer 2 solutions, have been hotly debated in the crypto community, with each claiming supremacy in a number of performance metrics. One important metric that has recently come into the spotlight is daily trading volume, with Arbitrum recording higher volumes than Optimism. This article explores the reasons for this trend and what it means for both Arbitrum and Optimism.
Overview
This article examines the daily trading volumes of Arbitrum and Optimism in 2021. As indicated in the report by Messari, Arbitrum’s daily trading volume was over twice that of Optimism’s at the beginning of the year, drawing attention to the advantages of the former in terms of scalability, speed and user adoption. This article highlights why daily trading volumes matter, what factors contribute to higher trading volumes, and what Arbitrum’s higher trading volume means to both platforms moving forward.
Why Daily Trading Volume Matters
Trading volume helps to assess the level of activity and liquidity in a market. Daily trading volume refers to the total number of assets traded in a cryptocurrency exchange, in this case on Arbitrum and Optimism Layer 2 networks. A high trading volume usually indicates a robust market, where traders are actively buying and selling digital assets.
Factors Contributing to Arbitrum’s Higher Trading Volume
Arbitrum’s higher trading volume can be attributed to several factors. Firstly, Arbitrum utilizes a hybrid approach that optimizes for speed and efficiency through off-chain and on-chain computations. This approach enables faster transaction processing times and lower gas fees, thus appealing to traders who prioritize speed when buying and selling digital assets. In contrast, Optimism employs a full rollup approach that moves all computation off-chain to minimize costs. This strategy, while potentially more scalable, often results in slower transaction processing times and greater gas fees. Secondly, Arbitrum has gained significant traction among developers in the DeFi space, who leverage the network to launch their dApps due to its superior performance and compatibility with Ethereum-based technologies. Lastly, Arbitrum’s user-friendly interface is more intuitive for novice traders, as it is built to mimic the traditional centralized exchange experience. This results in a higher level of adoption among casual traders, driving up overall trading volumes.
Implications of Arbitrum’s Higher Trading Volume
Arbitrum’s higher trading volume bodes well for its future prospects, as it indicates broader market uptake among crypto traders. Assuming that the trends continue, it may result in a snowball effect that will boost the platform’s usability and attract additional users who are enticed by the network’s superior performance and lower fees. Optimism will have to find ways to improve its current offering in order to catch up, or risk losing market share to their competitors.
Conclusion
Arbitrum and Optimism are two promising Layer 2 scaling solutions in the blockchain industry that have been highly sought after by crypto traders and developers alike. While both networks have their respective strengths and weaknesses, Arbitrum has emerged as the early leader in terms of daily trading volume. This is due to its hybrid approach that combines on-chain and off-chain computations, its high compatibility with existing Ethereum-based technologies, and its user-friendly interface. The implications of this trend suggest that Arbitrum’s superior performance and scalability may lead to an increase in market share, which will drive greater adoption of the platform. Optimism will need to work hard if they want to catch up and remain competitive.
FAQs
1. What is a Layer 2 scaling solution?
A Layer 2 scaling solution is a technology that aims to speed up the transaction processing times of a blockchain network by performing a majority of computation work off-chain.
2. What are the advantages of using Arbitrum over Optimism?
Arbitrum has a hybrid approach that optimizes for speed and efficiency, higher compatibility with existing Ethereum-based technologies, and a user-friendly interface.
3. Is daily trading volume the only factor that should be considered when choosing a Layer 2 solution?
No, there are many factors to consider, such as transaction processing times, user adoption, security features, and overall scalability.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/21248/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
The Intersection of Technology and Human Consciousness: Insights from Vitalik Buterin and Isha Foundation Founders
According to reports, on April 25th, the ReState Foundation held a virtual conference where Ethereum co founder Vitalik Buterin and Isha Foundation founders discussed the intersect
-
Aki Protocol Raises $40 Million in Seed Round Financing
On April 28th, it was announced that Aki Protocol, a Web3 data-driven influencer network, had completed a seed round financing with a valuation of $40 million. Akatsuki Web3 Fund E
-
What currency is str
<img src='https://img.doulai.com/pic/enpic.php?k=str What currency is ' alt='str What currency is ' alt='images} What currency is str? According to cryptoslab, the payment system StrikingBlock (STR) powered by blockchain networks is a digital asset and smart contract platform. Users can interact with any Ethereum based token through their account. It will not be affected when using the products developed by the company According to the data of CoinMarketCap, there are about 700 different currencies in circulation so far, including Bitcoin, Ripple Coin, Litecoin and XRP. In addition, there are many other types of applications that support this new technology. For example, Ripple also plans to expand its products into multiple areas of a wider ecosystem.
-
#Thetanuts Finance Completes $17 Million Financing for Multi-Chain Structured Product Agreement
According to reports, the multi chain structured product agreement Thetanuts Finance has completed a $17 million financing led by Polychain Capital, Hyperchain Capital, and Magnus
-
**Block’s Stock Falls After Hindenburg Short Report Release**
According to reports, Block fell more than 12% in the previous session, after Hindenburg released a report shorting Block Company, which showed that Block seriously overstated the
-
South African Court Rejects Attempt to Extradite Former Monero Developer
On March 16th, according to local reports, the South African Supreme Court of Appeal (SCA) rejected the application of Riccardo Spagni, a former Monero developer, declaring his extradition from the United States to South Africa illegal. In its ruling, the Supreme Court of Appeal maintained that Spagni had not sufficiently demonstrated the invalidity of the extradition procedure. In its ruling, the court argued that Spagni had legal representation when voluntarily waiving his rights at the extradition hearing, and therefore he could not challenge the effectiveness of the extradition process. The Supreme Court of South Africa has declared it illegal to extradite developer Riccardo Spagni from the United States to South Africa Analysis based on this information:The South African Supreme Court of Appeal (SCA) has rejected an application by Riccardo Spagni, a former Monero developer, to be extradited from the United States to South Africa. According to local reports, the court stated that Spagni had not sufficiently demonstrated the invalidity of…
-
On April 23rd, the Bitcoin Market Will See Approximately $2.85 Billion Worth of Option Contracts Expiring on April 28th
On April 23rd, according to Deribit data, approximately $2.85 billion worth of Bitcoin option contracts will expire on April 28th.
Data: A Bitcoin option contract worth $2.85 billi -
#Table of Contents
On April 1st, according to Spot On Chain monitoring data, approximately 2.7 billion ARBs (approximately $3.72 billion) were transferred from the Arbitrum home address and distribut
-
Ark Invest ups stakes in 92165 Block, spending $6.4 million
It is reported that Cathie Wood’s Ark Invest increased its holdings of 92165 Block shares through three funds on Monday. The purchase cost is estimated to be approximately $6.4 million. According to its latest transaction documents, Ark Invest added 77991 shares in its Ark Innovation ETF, 13170 shares in Ark Next Generation Internet, and 1004 shares in Ark Fintech Innovation ETF. Block’s share price closed down about 2.2% to $69.46 on Monday. According to the closing price, the recent acquisition cost of Ark is about $6.4 million. Ark Invest increased its holdings of more than 90000 Block shares through three funds on Monday Analysis based on this information:Ark Invest, the investment firm led by Cathie Wood, has reportedly increased its holdings of Block shares by purchasing over 92,000 shares worth an estimated $6.4 million on Monday. The company purchased the shares through its three funds, including Ark Innovation ETF, Ark Next Generation Internet, and Ark Fintech Innovation ETF. The block’s…
-
Bicasso’s Pilot Launches Successful NFT Casting in Record Time
On March 2, Zhao Changpeng, the founder of Coin An, said on Twitter yesterday evening that the first pilot of Bicasso has been completed, and 10000 NFTs have b…
-
Goldman Sachs Raises Probability of US Economy Entering a Recession
According to reports, Goldman Sachs has raised the probability of the US economy falling into recession within the next 12 months by 10 percentage points to 35%. Goldman Sachs raised the probability of a recession in the US economy within a year by 10 percentage points to 35% Analysis based on this information:Goldman Sachs, one of the largest investment banks in the world, has raised the likelihood of the US economy falling into a recession within the next 12 months, increasing the probability by 10 percentage points to 35%. This report is concerning as a recession can lead to job losses, decreased economic growth, and negative global impacts. A recession is defined as a significant decline in economic activity, which is typically characterized by a fall in Gross Domestic Product (GDP) for two consecutive quarters. The US economy has been experiencing continual growth for over a decade and now faces new challenges. The COVID-19 pandemic, which emerged at the beginning…
-
Why is Blockchain Down (Is Blockchain Banned?)
Why is blockchain down? Why is blockchain down?Recently, the computing power of
-
Table of Contents
According to reports, according to Twitter encrypted KOL ember monitoring, OKX has transferred 720000 OKBs (approximately $32.63 million) to the repurchase destruction address in f
-
PaprMeme, the NFT Lending Platform, Completes $3 Million Financing Round
It is reported that the NFT lending platform PaprMeme launched by four former Coinbase employees completed the financing of US $3 million, and Coinbase Venture…
-
Lido Finance Integrates OKXWeb3 Wallet for Liquidity Pledge on Ethereum
On April 21st, according to official sources, Lido Finance, the largest liquidity pledge agreement based on Ethereum, has now integrated OKXWeb3 Wallet. Users can connect to OKX We
-
Visa services for UK nationals in Sepolia
12:00-21:00 Keyword: UK, Sepolia, Visa, CZ
Overview of important developments in the evening of February 28
Interpretation of the news:
S…