Arbitrum (ARB) Might Be Worst Performing Ethereum L2, Here’s Reason

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As a long-term crypto investor with experience in Ethereum Layer-2 solutions, I’m closely monitoring the performance of various networks, including Arbitrum (ARB). The data from IntoTheBlock indicates that Arbitrum is currently underperforming among other Ethereum L2s. This is concerning because Arbitrum has previously enjoyed a strong reputation in the market.

According to IntoTheBlock’s data, Arbitrum (ARB) among various Ethereum Layer-2 solutions exhibits the poorest performance. This is indicated by subpar price trends and declining key metrics.

Significantly, Arbitrum’s distinguished standing among other L2 (Layer 2) solutions is cause for worry given this recent trend. It’s plausible that several factors may have contributed to this decline, which aligns with the broader downturn observed within the cryptocurrency market.

Other Ethereum L2s Outperforms Arbitrum

As a researcher analyzing data from IntoTheBlock, I discovered that a mere 0.47% of the total addresses have realized profits, which amounts to approximately 5,360 addresses. Conversely, the dominant group consists of addresses that are “out of the money” and currently experiencing losses, representing around 96.78%. This translates to over 1.15 million unprofitable addresses. The third category identified were those who were “at the money”, meaning their investment has neither made a profit nor incurred a loss.

Approximately 2.75% of addresses on the Arbitrum blockchain, which number to be exact 32,810, have neither generated a profit nor incurred a loss. These addresses are currently at the break-even point. This can be attributed to the fact that Arbitrum’s token is presently priced at $0.6756, marking a decrease of 13.32% over the past week.

The Ethereum L2 (Layer 2) ecosystem, including Arbitrum, has experienced harder times than it previously had. Among the Ethereum L2 projects, however, Arbitrum specifically faces a wave of unfavorable opinion.

Approximately 19,270 Polygon addresses, representing around 2.96% of the platform’s total addresses on Layer 2 (L2), currently have positive returns. Conversely, about 96.44% or 627,110 addresses are experiencing losses. Additionally, there are approximately 3,870 addresses that neither incurred gains nor losses, making up around 0.60% of the total.

Mantle, another swiftly developing Ethereum L2 solution, has witnessed significant expansion due to increasing demand for its offerings.

Mantle outperforms both Arbitrum and Polygon significantly in terms of transaction volume. Nearly half of its total address count, equating to approximately 8,490 addresses, currently enjoy profits on the network. This represents a substantial 46.69% proportion.

Approximately 47.18 percent, which is equal to 8,580 addresses, remain unprofitable. On the other hand, around 6.13 percent, or approximately 1,100 addresses, have reached a break-even point.

Ethereum L2s on The Rise

As Ethereum’s L2 (Layer 2) ecosystem continues to grow, with various protocols vying for a share of the market, OKX, a cryptocurrency exchange, entered the fray in April. They unveiled their X Layer project on Ethereum, which was constructed using Polygon’s Chain Development Kit (CDK). Consequently, this development allowed the public to access the project.

Arbitrum announced that it will make available $75 million worth of tokens on July 16. This is the fifth occasion that the platform has freed up some of its locked tokens for use by its teams, advisors, and investors.

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2024-07-09 15:39