Ethereum (ETH) as a Layer 1 protocol is gaining a lot of hype today, and this hype has been transferred to the Layer 2 protocols resident on it. For everyone following events in the crypto ecosystem, Ethereum-based L2s like Optimism (OP) and Arbitrum (ARB) have been making waves. However, new data from Messari has shown that the latter is outpacing the former in key metrics.
The Messari comment hinges on the fact that new protocols are known to be a major creator of wealth that generally serves as an attractive offering to members of their community. Messari noted that new tokens can be issued through which many early participants get to benefit at the time of launch.
As #Ethereum’s L2s continue to gain momentum, there has been an accelerated adoption of native protocols.— Messari (@MessariCrypto) March 28, 2023
A main driver of this trend has been the wealth effect that new protocols can create.
They can issue new tokens and distribute them to users, generating positive sentiment. pic.twitter.com/NPNTwz6xUp
According to the accompanying charts shared, Arbitrum's native applications recorded higher retention rates than those of Optimism. In particular, Arbitrum surpassed Optimism in terms of the ecosystem benchmark as well as network application coverage, among others.
Arbitrum released its airdrop for the ARB last week, giving many early backers and testnet users free tokens that were later sold for cash on exchanges that have listed the token since it went live.
Mixed Arbitrum momentum
As a Layer 2 protocol, Arbitrum aims to bring immense scalability solutions to Ethereum using the optimistic rollups technology. Arbitrum has been building its ecosystem for a while and has recorded a number of significant milestones in terms of broader adoption.
As reported by U.Today, the Shiba Inu meme coin version on Arbitrum, dubbed ArbInu, has been recording massive buying momentum in what appears to be significant momentum compared to the bigger meme coin.
Besides the positive updates, Arbitrum also suffered from cybercriminals perpetrating a shift in its network and community stability when its Discord server was compromised a few days ago.
Arbitrum is the new sensation, bringing the fight directly to other competing L2s on Ethereum.