Arbitrum is quickly becoming one of the most important projects in crypto. But, why?
What’s happening:
- Layer 2 Ethereum scaling platform Arbitrum is seeing significant growth recently and is becoming one of the fastest growing projects in all of crypto
By the numbers:
- Arbitrum is currently the 38th largest digital asset in the world
- The market capitalisation of Arbitrum is approximately $21B USD
- Arbitrum has successfully completed more than 500M individual transactions
- The average transaction on Arbitrum costs approximately just 0.26 cents in comparison to an average transaction fee of $5.00 on Ethereum
- The low cost transactions powered by Arbitrum have saved approximately 1.73M Ethereum in total gas fees
- There is more than $11B USD in total value locked on Arbitrum, which represents 49% of all total value locked on Ethereum layer 2 protocols
Market reaction:
- Arbitrum's token is up +89% in the last month
How it works:
- Arbitrum is built upon optimistic rollups, which executes transactions off-chain and bundles them together in large batches and then submits them onto the Ethereum blockchain
- By executing transactions off-chain, Arbitrum helps reduce the costs of Ethereum transactions by lessening the overall computational power and storage required
- However, because the transactions are done off-chain, there is a challenge period in which users can dispute transaction if they have proof they are fraudulent
Going deeper:
- Arbitrum has established many notable partnerships for their Layer 2 scaling technology, including Chainlink, Aave, Curve, Uniswap and others
