Arbitrum, the Ethereum L2 rollup is one of the first optimistic commercial solutions. It lowers costs and speeds up transactions on the Ethereum mainnet. Over the years, Arbitrum has done a great job in scaling Ethereum. At the time of going to press, it is the largest Layer 2 solution on the Ethereum network and its growth in just four months has been exceptional. The value locked (TVL) stands at $2.67B and accounts for 47% of the overall market share. However, it seems to be losing heat.
Appreciation station
Arbitrum and its community have come a long way since its inception. Even Ethereum’s chief executive, Vitalik Buterin acknowledged the same in a discussion. A.J Warner, one of Arbitrum’s key members shared a screenshot of the same here.
Nonetheless, it could help the struggling network. Consider this, according to L2beat, Arbitrum has witnessed a correction of almost 5% over the past seven days. The graph below highlights the said fall.
Many even say that its heavy dependence on Ethereum was the reason behind this setback. Nevertheless, the network did take some important strides forward to offset the correction. Just recently, Arbitrum One core network announced its full integration with Binance. More developments are scheduled on the Arbitrum platform. These collaborations could lead to Arbitrum’s increasing mainstream adoption and in return, attract more investors to it.
Overall, the largest altcoin, ETH and its rulers have taken over its entire ecosystem in one way or another. Not that long ago, the Ethereum Foundation launched $ 1 million in grants for crypto defense efforts.
Having said that, not everyone saw eye to eye. For instance, three Arrows Capital CEO Su Zhu berated Ethereum and its community in a tweet storm. His criticism was focused on exorbitant fees on the Ethereum blockchain. Also, the unwillingness of some of the most influential voices within the community to address that problem.
But, later sweetened his narrative by Tweeter:
“I want to sweeten that up and say quitting is not the right word. It was the heat of the moment. I’m sorry. There are some great teams working on scaling up. ETH on L2.
Overall, the Ethereum ecosystem has opened different opportunities for various developers to build their networks. This is something that can never be taken for granted.
