– zkSync showed promise of growth as the gas costs generated by the protocol increased.

-Arbitrum remained the dominant protocol despite low activity on the network.

New entrants like zkSync and Starknet are adding to the already crowded Layer 2 space as they compete to become industry leaders.

The growing number of participants in the Layer 2 space leads to increased competition. This can have both positive and negative effects on the development of L2 scaling solutions.

Stepping on the “gas”.

It should be noted here that zkSync has emerged as the frontrunner in Ethereum gas consumption, with a market share of 32%. This surpasses Arbitrum and Optimism, which captured 26% and 24% of the market share respectively.

zkSync’s performance in securing the bulk of Ethereum’s gas consumption is a promising indicator of user adoption and success.

Source: Artemis

In terms of fees generated, Arbitrum dominated among the L2 protocols, with token terminal data indicating it accounted for 41% of all L2 fees.

On the other hand, Polygon and Optimism made up 23% and 22% of the generated fees, respectively.

Arbitrum’s leadership in general fee generation suggests it has gained significant market traction in recent weeks.

However, for Polygon and Optimism to remain competitive, they must focus on providing competitive compensation structures and improving their platform features to attract and retain users.

Source: token terminal

Get active

The increasing number of daily active addresses on the Arbitrum network is said to be one of the reasons for generating high fees, according to data from Artemis.

Currently, the network has 249,900 daily active addresses. However, Polygon has surpassed Arbitrum in this respect, with 318,800 daily active addresses, while Optimism and StarkNet lag far behind in terms of user activity.

Source: Artemis

The current status of the L2 protocols is subject to change as they will all undergo major updates soon.

This update will convert the L2s into a settlement layer, enabling the deployment of L3s. The resulting improvements in compatibility, value capture, and developer experience are likely to improve the performance of these networks and change the competitive landscape of the Layer 2 space.

This post zkSync, Arbitrum shows progress, leaving Optimism and Polygon behind

was published first on https://ambcrypto.com/zksync-arbitrum-show-progress-leaving-optimism-and-polygon-behind/


Write A Comment