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Arbitrum
One major criticism of Ethereum has been that trading on the base layer can become slow and expensive during periods of high activity. While the roadmap for creating a scalable platform has been contentious, second-layer solutions like Arbitrum are emerging as viable solutions.
Arbitrum's primary value proposition is quite simple: faster and cheaper transactions. Compared to trading on Ethereum, it offers transaction speeds 40 times faster and costs 20 times less, all while being able to deploy the same applications and maintaining the same level of security as Ethereum. Therefore, Arbitrum has found product-market fit and has shown strong growth both in absolute terms and relative to its peers.
For fundamental investors looking for evidence of growth with fundamental traction, Arbitrum ranks high on the list. It is one of the fastest-growing second-layer solutions on Ethereum and has captured significant market share in the past year.
To delve deeper into the last point, Arbitrum is one of the few chains that have shown an increase in trading volume throughout the entire bear market period while overall usage remained relatively weak. In fact, if you break down the data, you'll find that Arbitrum has actually contributed 100% of the growth within the Ethereum ecosystem this year among Ethereum and all its other second-layer solutions. Arbitrum holds a significant share within the Ethereum ecosystem, while Ethereum itself commands a substantial share in the entire cryptocurrency space. |
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