Analytics firm IntoTheBlock says that major Ethereum (ETH) layer-2 (L2) protocols are evolving and finding their respective niche.
IntoTheBlock says that Ethereum-scaling solutions Base, Arbitrum (ARB) and Optimism (OP) are carving out their own paths and creating a “robust and diverse ecosystem.”
Looking at Base first, the analytics firm says that Coinbase’s new layer-2 protocol is benefitting from the crypto exchange’s massive user base and the rise of blockchain-based social networking platform Friend.tech.
“Ethereum’s L2 landscape is witnessing a surge of specialization among its key players.
Base is leading with the highest number of unique addresses and transactions, a momentum driven by Coinbase’s expansive reach. Perfect for social apps like FriendTech to flourish.”
In a new report, IntoTheBlock notes that Friend.tech has attracted more than 100,000 users in just a few weeks after launching.
“This has led Base to grow a broad reach of retail users, feeding into Coinbase’s strengths.”
Blockchain data shows that Base registered over 1.8 million transactions on September 14th, shattering its previous record of around 1.4 million.
IntoTheBlock is also watching the growth of Arbitrum, noting that the layer-2 protocol is dominating the decentralized finance (DeFi) space.
“Arbitrum maintains unmatched transaction volumes, being home to the most liquid DEXs (decentralized exchanges) and boasting the highest TVL (total valued locked) in the DeFi space.”
As for Optimism, the analytics firm says that the Ethereum-scaling solution has found its niche by serving as the base protocol for other layer-2s.
“Optimism is realizing its superchain aspirations, notably with the OP Stack finding utility as the foundational infrastructure for other L2 ventures including Mantle and Base.”
At time of writing, ARB is trading for $0.816 while OP is worth $1.37. Base, which officially launched last month, currently has no network token.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Mia Stendal