Optimism (OP), a layer-2 solution for Ethereum (ETH), surpassed competitor Arbitrum (ARB) in daily transactions and active addresses. This marks the first time Optimism outperformed Arbitrum, according to DeFi researcher Thor Hartvigsen.
The surge in optimism may be short-lived due to various factors. One such factor is the introduction of Worldcoin, a contentious project by Sam Altman, founder of OpenAI. Worldcoin relies on Optimism as its initial blockchain platform.
Worldcoin (WDC) is a cryptocurrency that aims to establish a global network for identity and finance, owned collectively. Users can obtain a World ID digital passport by scanning their irises with an Orb device. As a bonus, users signing up in specific countries will receive Worldcoin tokens.
The hype surrounding Worldcoin has potentially contributed to an increase in the number of transactions and addresses on Optimism. However, it is important to note that this data does not necessarily reflect the actual usage of DeFi applications on the network.
According to Hartvigsen, decentralized exchanges (DEX) volumes on Arbitrum still overshadow those on Optimism, with 6-8 times higher activity.
Arbitrum Still Leads In TVL, And Value Moved
Arbitrum’s dominance over Optimism is evident in both networks’ total value locked (TVL). TVL represents the assets deposited in blockchain smart contracts. As per L2Beat, Arbitrum One boasts a TVL of $2.6 billion, while Optimism only has $1.2 billion as of July 29, 2023.
Arbitrum One dominates Ethereum’s L2s market with a significant 58% share, whereas Optimism holds only 27.5%. Additionally, InvisibleB4, a blockchain analyst, reveals that Arbitrum’s bridges have facilitated the transfer of $4.5 billion from Ethereum, while Optimism’s bridges have moved just $2.1 billion.
Some proponents of Optimism contend that the network should receive greater recognition due to its recent Bedrock upgrade. This upgrade resulted in a 50% reduction in fees and an enhanced developer experience.
However, some critics say that Optimism lacks notable DeFi projects apart from Velodrome and Synthetix. These critics also point out that Arbitrum’s ARB airdrop was more generous compared to Optimism’s OP airdrop.
The sustainability of Optimism maintaining its lead over Arbitrum in terms of daily transactions and active addresses remains uncertain. It is yet to be determined if Optimism can withstand the competition from its rival once again.
The rivalry between these two layer-2 solutions is expected to intensify as more Ethereum users and developers migrate to capitalize on the advantages of lower costs and faster speeds.
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