Ethereum Layer 2 Protocols Set New Weekly High For Transactions

Summary:

• Layer 2 transactions on Ethereum’s blockchain hit a new seven-day high, Orbiter Finance data showed.
• Orbiter’s dashboard recorded over 5.78 million transactions between October 27 and November 2.
• Arbitrum led the L2 pack with around 46.59% of layer 2 transactions carried out on the protocol.
• Transactions on Ethereum’s mainnet only exceeded L2s by about 30%. 

Ethereum layer 2 solutions hit a landmark for weekly transactions as scaling solutions continue to make their case and grow a presence within ETH’s ecosystem. 

Data extracted from the on-chain aggregator Finance showed that transactions on L2 protocols exceeded 5.78 million. The dashboard recorded transactions in a seven-day period between October 27 and November 2. ETH’s layer 1 mainnet recorded 7.3 million transactions within the same timeframe.

According to the data, Ethereum Layer 2 protocols accounted for around 78% of transactions completed on the network. Most users seemingly preferred L2 scaling solution Arbitrum with 46.59% of transactions completed on the protocol. Optimism followed closely behind, accounting for 33.71% of L2 transactions. 

Ethereum Layer 2 Protocols Offer Scaling For ETHs Chain

Ethereum Layer 2 protocols have popped up in recent years in a bid to tackle issues synonymous with the largest altcoin blockchain in crypto. ETH’s chain has recorded periods of congestion and high gas fees, resulting in slower transactions.

Layer 2 solutions offer an alternative to the ETH mainnet and aim to ease the stress on the network. L2 protocols like Arbitrum achieve this by tapping zero-knowledge and optimistic roll-up technology while running atop the Ethereum blockchain. 

Such protocols focus on scaling by completing thousands of transactions on a parallel chain. This allows users to leverage Ethereum’s security standards while avoiding network congestion and pricey transaction costs.

Ethereum founder Vitalik Buterin regarded layer 2 scaling strategy as a success, per a tweet from 2020. Buterin further opined that these protocols will refine their technology and deploy more optimized solutions.

Major protocols like staking service Lido Finance have also launched on Arbitrum and Optimism.