After six months of trailing behind Arbitrum, the Optimism network has finally surpassed its competitor in transaction volume, according to recent data from blockchain analytics platform Artemis. Both networks, serving as layer 2 solutions for Ethereum, utilize optimistic rollup technology to streamline and consolidate transactions, potentially leading to reduced transaction fees.
During season one of its “quest” feature, Optimism fell behind Arbitrum in terms of transaction volume. However, on July 25, the network reclaimed its position at the top as Worldcoin was launched. Analyzing data from Artemis, it is evident that both networks exhibited similar levels of transaction volume from August to December 2022. While Optimism briefly pulled ahead in December, it fell behind again in January, which coincided with the conclusion of season one of the “quest” feature.
Arbitrum experienced a significant surge in volume in March when it introduced its native token, Arbitrum (ARB), and distributed it to users via airdrops. In an effort to lower transaction fees, Optimism implemented its Bedrock upgrade in June, resulting in a notable 67% increase in transaction volume. Despite this surge, Optimism could not overtake Arbitrum at the time, as indicated by Artemis data.
Worldcoin Launch and Optimism’s Ascendance
The period between July 23 and 26 saw a further surge in Optimism transactions, skyrocketing from 490,500 to 809,070, a remarkable increase of nearly 65%. It was during this timeframe that Optimism secured its position as the top network, coinciding with the launch of Worldcoin on its platform.
The growing activity on Optimism may also be attributed to the imminent release of Coinbase’s Base network. Developers anticipate that Base will be interconnected with Optimism as part of an upcoming “Superchain,” which could have influenced investor sentiment and participation.
Total Value Locked: A Different Story
While Optimism celebrated its victory in transaction volume, it significantly lags behind Arbitrum in terms of total value locked (TVL). DefiLlama, a blockchain analytics platform, reports that Optimism currently has around $923 million TVL, whereas Arbitrum boasts over $2 billion TVL. This substantial gap highlights the need for Optimism to attract more capital to its contracts to further solidify its position as a formidable competitor.
Optimism has seized a significant victory by surpassing Arbitrum in transaction volume after several months of trailing behind. The successful launch of Worldcoin, the continuous improvement of the Optimism network, and the anticipation surrounding Coinbase’s upcoming Base network have all contributed to its rise. However, to secure long-term success, Optimism must work towards increasing its total value locked and capturing a larger share of the market.