Ethereum Layer 2 protocols set new weekly record for transactions

Summary:

  • Layer 2 transactions on the Ethereum blockchain hit a new high in seven days, according to data from Orbiter Finance.
  • The Orbiter dashboard recorded over 5.78 million transactions between October 27 and November 2.
  • Arbitrum led the L2 pack with approximately 46.59% of Layer 2 transactions conducted over the protocol.
  • Transactions on the Ethereum mainnet only exceeded L2s by about 30%.

Layer 2 Ethereum solutions have reached a landmark for weekly transactions as scaling solutions continue to make their case and grow their presence within the ETH ecosystem.

Data pulled from on-chain aggregator Finance showed that transactions on L2 protocols exceeded 5.78 million. The dashboard recorded transactions over a seven-day period between October 27 and November 2. The ETH Layer 1 mainnet recorded 7.3 million transactions during the same period.

According to the data, Ethereum Layer 2 protocols accounted for around 78% of transactions on the network. Most users apparently preferred the L2 Arbitrum scaling solution with 46.59% of transactions taking place on the protocol. Optimism followed closely, accounting for 33.71% of L2 trades.

Ethereum Layer 2 protocols offer scaling for the ETH chain

Ethereum Layer 2 protocols have emerged in recent years in an attempt to solve the problems synonymous with the largest altcoin blockchain in crypto. The ETH chain has experienced periods of congestion and high gas fees, leading to slower transactions.

Layer 2 solutions offer an alternative to the ETH mainnet and aim to alleviate stress on the network. L2 protocols like Arbitrum achieve this by leveraging zero-knowledge and optimistic deployment technology while running on the Ethereum blockchain.

These protocols focus on scaling by performing thousands of transactions on a parallel chain. This allows users to take advantage of Ethereum’s security standards while avoiding network congestion and expensive transaction costs.

Ethereum founder Vitalik Buterin considered the Layer 2 scaling strategy a success, according to a 2020 tweet. Buterin further believed that these protocols will refine their technology and deploy more optimized solutions. .

Major protocols like the Lido Finance staking service have also spear about arbitration and optimism.



Source link