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Layer 2 protocol based on ethereum, optimism has outpaced arbitratrum in trading volume since mid-December.
The spirit of optimism takes hold. The Win
There has been a clear divergence in the volume of transactions on both protocols over the past month. Although both had risen steadily since the start of last year, arbitrum had always maintained its leading position in the transaction business. However, this changed towards the end of the year, when optimism went too far beyond arbitrum.
The reason for this discrepancy and increased transactions is the token of optimism, which has been one of the most successful tokens in Layer 1 and Layer 2 protocols. With liquid staking derivatives like lido and the high-performance rocket pool, investors are looking for more ways to win an ether exposure. Since arbitrum has no own chip, he was dropped in the race. Other signs of optimism have also benefited from this heightened interest, with gains of more than 200% year-to-date.
GMX Drops, Synthesis Grow.
In addition, the decrease in the use of GMX is another factor that contributes to the increase in volumes of optimistic transactions. This permanent time decentralized exchange is built on arbitrum and has seen a 30% decrease in usage since December 10. on the other hand; on the other hand, There has been a surge in activity on the perpetual exchange of synthesizer, based on an optimistic outlook, on or after December 20th. Other protocols such as kwenta which are constructed with the help of synthesizer on optimism have also experienced a sudden increase in transaction volume.
The L2 protocols have to be re-invented.
Experts considered the Arbitrum and Optimism L2 protocols to be among the most important players in the Ethereum ecosystem as they open the door to scalability and enhanced performance while maintaining the integrity of the Ethereum chain.
According to Marom Yigy, the VP of Blockchain at LEAP (Web3-based sports-discovery and endorsement platform), the future of Layer-2 protocols depends on how well they reinvent themselves.
She said,
“Layer 2 solutions are most often workarounds to bottlenecks on the Ethereum network; they won't disappear at this step of the merge because gas prices aren't expected to drop. Which will probably change after the sharding is introduced, as the sharding itself solves the problem that the L2S were created to solve. In the meantime, L2s may not be as popular, although grown-ups will find new ways to reinvent themselves."
Arbitrum’s last significant upgrade took place on August 31, 2022, when the protocol launched its Nitro upgrade. Since then, optimism has embraced the challenge and raised the bar with its own chips. Arbitrum must intensify the reinvention game if he wants to find his old advance.
