There is usually something going on in the Ethereum ecosystem. Whether it is a new NFT collection or the exorbitant gasoline costs, there are still eyes on the second largest crypto by market cap. In the frenzy of activity, however, it’s easy to miss Ethereum’s Layer 2 solutions – smart contract stacking chains.
Rolling into the future
Rollups are a Layer 2 solution to reduce congestion on the Ethereum mainnet by handling transactions externally. A recent report from Arcane Research analyzed the difference this has made for the blockchain ecosystem.
The report found that stacks like Arbitrum One and Optimism reduced fees by 90% or more. For example, if transferring ETH costs $ 18.11 and exchanging tokens costs $ 90.55, Optimism costs less than $ 0.01 for these two activities.
And yet the trade-off is speed. The observed report,
However, StarkNet and zKsync plan to launch EVM-enabled zK-rollups soon. Compared to optimistic rollups where native withdrawals of any asset take more than a week, zK rollups reach Ethereum’s finality in about 10 minutes.
At the Wanxiang Blockchain Summit, Vitalik Buterin explained how attendees can deposit and withdraw money from the launched stacking networks. In addition, he claimed that a stack would allow 10x expansion.
Not quite rock and roll
Despite these statistics, a closer look at Arbitrum is needed. The total value of the locked layer 2 solution [TVL] exceeded $ 2 billion, but that’s not the only indicator that matters. As previously stated, Arbitrum was unable to maintain its growth momentum. While it saw growth rates of 192,578% in September, it was 134% in October and in a single-digit range in the first week of November.
Simply put, the challenge of scaling Ethereum is not yet resolutely resolved.
Added Arcane Research report,
“Many rollup projects are still in their early stages and do not yet have a token. “
In the loop
Loopring has been in the headlines in recent days. One of the main reasons for this was the rumor that the protocol could partner with GameStop for an NFT market.
On its own, however, Loopring, which uses zk-rollups, has seen an increase in TVL and is approaching the $ 600 million mark.
Just a week ago, the protocol’s TVL hit an ATH of $ 459 million.