The scaling solution Arbitrum has hit a new milestone, overtaking Ethereum (ETH) in daily transactions. The project achieved this feat on Tuesday, processing over 1.1 million transactions, higher than Ethereum's 1.084 million. This is a significant achievement for the Arbitrum team and its community, who have been working hard to scale Ethereum.
Arbitrum is a roll-up scaling solution that aims to reduce the cost and increase the speed of Ethereum transactions. The platform does not have a token yet, but it has seen its total value locked (TVL) skyrocket from zero in August 2021 to $1.92 billion as of this writing. It is currently the fourth-ranked chain in terms of TVL, behind Ethereum, Tron, and Binance Smart Chain.
The TVL of a blockchain represents the total capital held within its smart contracts. It is calculated by multiplying the amount of collateral locked into the network by the current value of the assets. The fact that Arbitrum's TVL has increased so rapidly is a testament to the platform's potential to become a major player in the decentralized finance (DeFi) space.
Arbitrum's active address count has also exploded recently, going from around 60,000 at the start of the month to nearly 118,000 by February 20th. This indicates that more people are using the platform to conduct transactions, further bolstering its position as a serious contender in the scaling solution market.
The success of Arbitrum is a promising development for Ethereum and the wider DeFi ecosystem. As more and more users adopt the platform, it will become easier and cheaper to conduct transactions on Ethereum. This will help to reduce congestion on the Ethereum network and make DeFi more accessible to a wider audience.
Overall, the milestone achieved by Arbitrum is a significant step forward for the project and the DeFi space as a whole. It shows that there is a real appetite for scaling solutions that can help to make Ethereum more efficient and accessible to users around the world. As the platform continues to grow and evolve, it will be interesting to see how it competes with other scaling solutions and what new developments it brings to the table.
