Today saw the announcement that the Arbitrum One team has released an update that further reduces transaction fees on the popular Layer-2 platform.
While Ethereum is the most popular Layer 1 blockchain ecosystem (most DeFi and NFT projects are built on it), the gas fee’s have been historically high causing a lot of friction for new users, as well as users with smaller transaction budgets. In response to this, other Layer-1 solutions have been created (Avalanche, Fantom, Binance Smart Chain, etc) to be potential “Etheruem Killers”.
Other projects have taken the approach of building on top of Ethereum as a Layer 2.
Enter Arbitrum One: built on top of Ethereum as a scaling solution to encourage more dApp, DeFi and NFT projects to launch with broad reach.
Some popular projects to note that have launched on Arbitrum One: DOPEX (Decentralized Options Exchange, $DPX), Treasure DAO (NFT marketplace; $MAGIC), and GMX (decentralized spot and perpetual exchange; $GMX) are all using the Arbitrum One layer 2 platform and seeing good growth in users and interest.
Dopex is breaking ground as the go-to onchain options platform with Single Staking Options Vaults (SSOV’s) and the Treasure DAO NFT marketplace saw an incredible number of daily transactions on launch. A very encouraging sign for the ambitious fledgling project.
The significance of today’s announcement shows that the Off-Chain labs team is still innovating and finding ways to decrease the transaction costs carried by users. With fee’s continuing to drop, coupled with more users participating in options, NFT’s and perp/futures products the Arbitrum One ecosystem looks poised to see more interest from new projects looking to launch in the Ethereum ecosystem.
Another project to keep an eye on would be ZKSync, using ZK rollups to scale and add a privacy layer to transactions. There has been a lot of positive chatter about ZKSync, but as of now Arbitrum One is the most used Layer-2 solution. (Neither Arbitrum One nor ZKSync have tokens currently).
