Ethereum Layer 2s Evaluation
Exploring the active addresses, transaction volumes, and valuations of Ethereum layer 2s ecosystems
In an ever-changing landscape influenced by shifts and advancements, grasping the nuances of market dynamics becomes crucial to understand what is going on in crypto markets. Diving into on-chain data can unveil insights that might not become readily apparent through causal research. Keeping this perspective in consideration, we intend to examine the Optimism, Arbitrum, and Base ecosystems more closely. Exploring the active addresses, transaction volumes, and valuations within various ecosystems.
Monitoring active addresses serves as a valuable metric for observing network activity as it evolves over time. Generally, an increasing count of active addresses indicates greater adoption and blockchain usage, whereas a decreasing active addresses figure suggests reduced demand for the network.
Active addresses encompass those addresses that have executed one or more on-chain transactions on a specific day. The Optimism and Arbitrum ecosystems were engaged in a relatively balanced competition when it came to the quantity of active addresses within their respective networks, up until August 2023.
Following the launch of Base and the substantial resources and visibility it gained through Coinbase’s prominence in the crypto ecosystem, the number of active users in Ethereum L2s experienced a remarkable change, both Arbitrum and Optimism were quickly surpassed in terms of active addresses by Base. We observe a similar trend for the number of transactions being settled.
This metric offers valuable information regarding the volume of transactions conducted within the Optimism, Arbitrum, and Base layer 2 solutions, all seamlessly integrated into the Ethereum Blockchain’s framework. Up until the start of August, Arbitrum had notably held its position as the frontrunner in terms of transaction within these three ecosystems.
Nevertheless, in recent months, Optimism has garnered significant attention thanks to its groundbreaking innovations centered around the Superchain concept. This forward-thinking strategy entails expanding the OP stack to enable a more seamless deployment for L2 chains while still capitalizing on the security offered by the Optimism infrastructure. In exchange, Optimism accrues a portion of the fees generated by these L2s.
Additionally, one more time the landscape underwent changes with the introduction of Base, which was seamlessly integrated into the OP stack. Notably, Base achieved a remarkable feat by surpassing both Arbitrum and Optimism in terms of transaction processing, underscoring its increasing significance within this dynamic ecosystem.
Optimism has seen its valuation rise in recent weeks, overtaking Arbitrum’s valuation. The premium in valuation is likely a consequence of Optimism’s ongoing success as an infrastructure platform, which has led to the development of numerous forks of its OP Stack.
The enduring value of OP should not be entirely dependent on the success of Optimism Mainnet. The true product that Optimism is creating an infrastructure platform for the launch of other rollups.
On the other hand, Arbitrum has also introduced Arbitrum Orbit. This one aims to establish a similar ecosystem where independent chains can be launched on top of the existing Arbitrum chain, streamlining the process while benefiting from the security of the parent chain.
In conclusion, the world of Layer 2 scaling solutions within the Ethereum ecosystem has witnessed significant developments in recent months. Optimism’s Superchain vision concept and the integration of Base by Coinbase have sparked substantial interest and investment. While Optimism faced a TVL decline in August, its valuation has since risen, highlighting its enduring appeal. Arbitrum, on the other hand, has also launched Arbitrum Orbit, a move toward fostering an ecosystem of independent chains. These dynamic advancements showcase the continuous evolution and innovation within the Layer 2 space, promising exciting possibilities for the future of blockchain technology.
