Ethereum Layer 2 Network, Arbitrum, Exceeds 4 Million Active Accounts and $5.5 Billion on On-Chain Locking

According to reports, Dune Analytics data shows that the total number of active accounts in the Ethereum Layer 2 network, Arbitrum, has exceeded 4 million, reaching 4.003 million so far. The current total number of network account creations is 4.801 million. In addition, the total value of Arbitrum’s on chain locking reached $5.523 billion, with a total of over 186 million on chain transactions.

The total number of active accounts in Arbitrum has exceeded 4 million

The Ethereum blockchain network has been continuously upgrading and expanding its ecosystem to enhance its scalability, security, and transaction speed. One of the solutions is the implementation of the Layer 2 network, which allows for faster and cheaper transactions compared to the Layer 1 network. The Layer 2 implementation, Arbitrum, has recently exceeded 4 million active accounts, with a vast amount of on-chain locking reaching $5.523 billion.

What is Arbitrum, and How Does it Work?

Arbitrum is a decentralized Layer 2 scaling solution for Ethereum, which aims to improve transaction speed and reduce the associated costs of using Ethereum. It uses an Optimistic Rollup technology, which enables Ethereum transactions to be executed on a Layer 2 network instead of Layer 1.
Arbitrum’s Optimistic Rollup technology works by processing transactions off-chain, then aggregating them before submitting them to the Layer 1 network. This approach reduces transaction fees, reduces congestion in the Layer 1 network, and greatly improves the transaction speed.

The Increasing Popularity of Arbitrum

With the growing demand for faster and cheaper Ethereum transactions and the outstanding features of Arbitrum, many Ethereum users have migrated to the Layer 2 network. According to Dune Analytics, the total number of active accounts in Arbitrum has recently exceeded 4 million, showing a significant increase in user adoption.
Arbitrum’s popularity can be attributed to its advantages, such as faster transaction speed, reduced transaction fees, and low gas fees. Unlike the Layer 1 network where users have to wait for confirmation times, Arbitrum’s transactions are confirmed almost instantly, which makes it more suitable for DeFi protocols, gaming, and other blockchain-based applications.

On-chain Locking and Transactions in Arbitrum

The success and adoption of Arbitrum are not limited to the number of active accounts only but also reflected in the total value of Arbitrum’s on-chain locking, which has reached $5.523 billion. The on-chain locking refers to funds that are locked on the blockchain, which can be used for decentralized exchange (DEX) transactions, yield farming, and other DeFi protocols.
In addition, the total number of on-chain transactions has also contributed to Arbitrum’s growth, with over 186 million on-chain transactions recorded so far. This shows that Ethereum users are embracing the platform’s Layer 2 scalability solutions, and this trend is likely to continue in the near future.

Conclusion

With Ethereum’s ongoing upgrades and the development of its Layer 2 solutions, the blockchain network continues to generate buzz and interest among its users. Arbitrum’s recent achievement in surpassing 4 million active accounts and on-chain locking reaching $5.523 billion, demonstrates that there is a growing demand for faster and cheaper transactions in the Ethereum ecosystem. The implementation of Layer 2 technologies like Arbitrum has provided new opportunities for developers and entrepreneurs to build valuable projects and attract more users to the platform.

FAQs

1. What is Ethereum’s Layer 2 network?
Ethereum’s Layer 2 network refers to a group of scaling solutions that ease network congestion, lower transaction fees and increase transactional speed on the Ethereum blockchain. It provides a viable alternative to the Layer 1 network, making it easier for developers and users to utilize the blockchain’s capabilities.
2. What is the purpose of Arbitrum?
Arbitrum aims to solve the scalability issues of the Ethereum network by processing transactions off-chain, then aggregating them before submitting them to the Layer 1 network. It enables faster transaction speed, lower transaction fees, and low gas fees, which makes it ideal for decentralized finance (DeFi) protocols and gaming applications.
3. How does Arbitrum differ from the Layer 1 network?
Arbitrum is a Layer 2 solution that processes transactions off-chain and batches them before submitting them to the Layer 1 network. This approach reduces transaction fees, congestion in the network and improves transaction speed, making it more efficient than the Layer 1 network.