Since the Shapella Upgrade went live earlier this week, many protocols associated with the Ethereum network have been receiving a significant boost. By virtue of its current price action, Layer 2 protocol Arbitrum (ARB) appears to be the biggest beneficiary of this growth thus far.
According to data from CoinMarketCap, Arbitrum is changing hands at a price of $1.54, up by 20% in the past 24 hours, and by more than 28% over the past seven days. Though Arbitrum is a relatively new protocol, its technological advance, robust and diverse community, and its user-driven innovations have all set it on a pedestal to enjoy an impressive price surge.
As a protocol that helps scale Ethereum transactions through the optimistic rollups technology, Arbitrum has seen more embrace than the majority of its competitors since its inception, and more so since the Shapella Upgrade went live. Data from L2Beat showed that Arbitrum trails only the main Ethereum blockchain in terms of the total average Transactions Per Second (TPS) in the past day.
Notably, Arbitrum has the highest number of transaction counts, pegged at 34.51 million, even higher than 31.88 million for Ethereum.
Arbitrum and its growing utility
The price performance of Arbitrum can be pegged to growth in the monitoring of new products, services and general innovation to help broaden the scope of user utility accessible to members of its ecosystem.
One of the recent moves by the protocol is the launch of the non-fungible token (NFT) tracking feature, floated in partnership with Alchemy. NFT tracking capabilities are an avenue for the users of Arbitrum to estimate the current valuation of digital collectibles, their features and possible transfer details from one address to another.
With Arbitrum expanding as the obvious dominant L2 protocol in terms of transaction count, it plans to expand its diversity, and this shows why the bulls appear positively oriented toward it today.