Ethereum-base Arbitrum witnessed an increase in activity post Nitro update: Delphi Digital | The Financial Express

Ethereum-base Arbitrum witnessed an increase in activity post Nitro update: Delphi Digital

According to Cointelegraph, insights from a November 1, 2022, report showed that Arbitrum’s total number of transactions has went up by 550% since August, 2022

Ethereum-base Arbitrum witnessed an increase in activity post Nitro update: Delphi Digital
On October 13, 2022, Offchain Labs announced the decision of completing the acquisition of one of the core development teams behind the Ethereum Merge

Ethereum layer-2 scaling solution Arbitrum has reportedly seen an increase in activity since its Nitro update took place in August, 2022, which clocked approximately 62% as many transactions as the Ethereum base layer, as reported by Cointelegraph.

According to Cointelegraph, insights from a November 1, 2022, report showed that cryptocurrency research firm Delphi Digital stated that for the week ended October 24, 2022, Arbitrum’s total number of transactions has went up by 550% since August, 2022. It is believed that data was taken from Dune Analytics.

On the basis of information by Cointelegraph, through a previous tweet, Delphi Digital initially phrased Arbitrum to account for 62% of all Ethereum-based transactions, which was later clarified as “incorrect phrasing”. Reportedly, Arbitrum is considered as an optimistic roll-up designed by blockchain development firm Offchain Labs, aimed towards scaling Ethereum smart contracts. It utilises Optimistic Rollup Technology for bundling large batches of transactions off-chain from Ethereum smart contracts and decentralised applications before making the submission to Ethereum. Protocols such as decentralised exchanges SushiSwap, Uniswap, GMX, lending protocol Aave, and liquidity transport protocol Stargate. At the time of the publication’s writing, L2Beat reportedly had a total value locked (TVL) of $2.59 billion. It has been mentioned by Delphi analysts that weekly active users had went up on Arbitrum, which grew 125% since October 10, 2022, to reach a limit of 282,000 in the week ending October 24, 2022. 

Moreover, Cointelegraph noted that on August 31, 2022, the Arbitrum One mainnet went through the upgrade to Nitro, on which Offchain Labs made the claim would result in the fall of transaction costs’ on account of increasing network capacity. Due to the low fees, it resulted in players from the cryptocurrency ecosystem wanting to integrate with Arbitrum One. On October 13, 2022, Offchain Labs announced the decision of completing the acquisition of one of the core development teams behind the Ethereum Merge, Prysmatic Labs, on account of communication and collaboration between developments on both layers. 

(With insights from Cointelegraph)

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First published on: 03-11-2022 at 11:38 IST