Optimism transactions surpass Arbitrum, but what’s behind the uptick in users?

Optimism (OP) is simply a Layer 2 scaling solution, which operates arsenic a abstracted blockchain built connected apical of Ethereum. Despite having a smaller full worth locked (TVL) than its rivals, Optimism whitethorn inactive person the imaginable to thrive successful the progressively competitory DeFi landscape. 

Being 1 of the pioneers successful the DeF space, Optimism initially gained an archetypal but had to contend with fierce competition. The task has been trailing down different scaling solutions successful presumption of regular transactions for the past six months. However, successful precocious July, the concern changed arsenic Optimism yet overtook its main rival Arbitrum and is showing signs of expanding request from users.

The emergence of Layer 2 scaling solutions

The summation successful Layer 2 enactment connected Ethereum has been significant, surpassing mainnet enactment by much than 4 times, according to information from L2beat. Various solutions person emerged to code Ethereum's scalability challenges and each Layer 2 task focuses connected antithetic aspects specified arsenic privacy, circumstantial decentralized applications and NFT marketplaces.

Consequently, the leaderboard of transactions and volumes perpetually fluctuates based connected demand, and each solution comes with its ain advantages and drawbacks.

Optimism operates utilizing rollups, bundling each transactions into a azygous transaction to beryllium executed connected the basal layer, inheriting each information features from Ethereum. The doctrine down Optimism assumes that each transactions are valid unless challenged and proven otherwise, allowing for cost-effective and accelerated transactions for users.

Transactions: Ethereum mainnet vs. Layer-2. Source: L2beat

While Optimism and Arbitrum (ARB) trust connected rollups, the halfway quality lies successful Arbitrum's centralized attack wherever a azygous entity (sequencer) is liable for submitting fraud proof. On Optimism, anyone tin taxable them.

Layer-2 transactions per second, 7-day change. Source: L2beat

Among the Layer-2 competitors, Optimism has been the standout performer since July 20, experiencing a 47% maturation successful regular transactions. This maturation has enabled Optimism to surpass its rival Arbitrum successful regular transactions for the archetypal clip successful 6 months.

Furthermore, the Optimism protocol has witnessed a surge successful regular progressive addresses, with a 27.6% summation successful 30 days, portion Arbitrum's enactment declined by 7.5%.

Arbitrum vs. Optimism, fig of unsocial regular progressive addresses. Source: GrowThePie

This inclination indicates a imaginable displacement successful dominance, though drafting conclusions prematurely would beryllium unwise. Arbitrum's main vantage lies successful its overmuch larger full worth locked (TVL) compared to Optimism.

According to DefiLlama, Arbitrum presently holds a important TVL of $2.35 billion, whereas Optimism's TVL is comparatively little astatine $920 million. Arbitrum's dominance is particularly evident successful the decentralized concern (DeFi) applications it shares with Optimism, specified arsenic Uniswap and AAVE. Additionally, Arbitrum boasts an awesome $500 cardinal TVL successful the derivatives speech GMX.

Coinbase and Worldcoin backmost the caller surge successful Optimism activity

Two of the main reasons for higher request connected Optimism are accrued usage from Coinbase and Worldcoin. The task is besides connected way to instrumentality important privateness mechanisms that could make different usage case.

A pivotal infinitesimal for Optimism came with the motorboat of Coinbase's sandbox connected July 21, providing developers with a trial situation to physique and deploy caller applications connected this Layer 2 solution. This inaugural incentivizes the instauration of caller tools, applications, and protocols, fostering maturation and innovation.

One of the projects utilizing Optimism arsenic a scaling solution is Worldcoin, which has been gaining important attention. The token airdrop connected July 26 further boosted enactment connected Optimism aft supporting Uniswap connected the Optimism mainnet. Worldcoin has besides deployed astir of its Safe wallets connected Optimism. This adoption has contributed importantly to the regular enactment connected the network, accounting for astir 40%.

Share of transactions connected Optimism Network, July 27. Source: Dune Analytics

Related: Worldcoin stuck aft 70% driblet from highest — More downside for WLD price?

New privateness features could payment Optimism

Optimism's ecosystem is acceptable to acquisition respective developments, including 2 proposals by O(1) Labs and RISC Zero to instrumentality zero-knowledge impervious systems. This determination volition supply the web with its ain ZKP layers, akin to developments connected Polygon (MATIC) and ZKSync.

The maturation successful progressive addresses connected Optimism is simply a affirmative indicator for the network's occurrence and the palmy motorboat of the Worldcoin task marked a milestone for this scaling solution.

The surge successful regular progressive addresses is besides promising, signifying the network's continuous maturation and imaginable opportunities with the palmy implementation of its privateness solutions.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.