Arbitrum outperforms Optimism in this key area; can OP stay true to its name?

• Optimism’s TVL and income declined, although the fuel charges used on the platform elevated.
• The speed and community progress of Optimism plummeted.

In keeping with a tweet on 1 January, it was noticed that Arbitrum managed to out-compete different L2s, comparable to Polygon and Optimism by way of TVL. Nevertheless, Optimism nonetheless managed to dominate the L2 area in different areas.

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🔥 THE TVL BETWEEN TOP LAYER 2 ON ETHEREUM 🔥

By overcoming #Polygon and #Optimism, @arbitrum has naturally risen to the highest 1 Layer 2 in TVL by means of 2022.

Do you suppose @arbitrum will turn out to be the brand new residence of DeFi. (💙,🧡)? Let’s remark under 👇#Arbitrum #DeFi pic.twitter.com/AAtP0g8e2V

— Arbitrum Area (💙,🧡) (@Arbitrum_Space) January 1, 2023

Furthermore, in keeping with DeFi Llama, Optimism’s TVL declined from $540 million to $500 million within the final 30 days. This decline in TVL affected Optimism’s income as properly, which fell by 3.3% in the identical interval, as per knowledge from Token Terminal.

Gasoline me up, Scottie

Although Optimism’s TVL and income continued to say no, it was in a position to outperform different L2s by way of fuel utilization, in keeping with Dune Analytics. The Layer 2 answer was even in a position to outpace Arbitrum on this regard. 

Supply: Dune Analytics

One cause for the rising fuel utilization on Ethereum [ETH] could possibly be attributed to the truth that customers had been in a position to save loads of ETH through the use of Optimism. 

As evidenced by the chart under, the quantity of financial savings that customers had been making on their transactions through the use of Optimism continued to develop. On the time of writing, Optimism offered financial savings of as much as 98.6% to its customers.

Supply: Dune Analytics

Nevertheless, these developments didn’t support Optimism’s on-chain exercise. During the last 30 days, Optimism’s velocity and community progress declined. This indicated that the variety of instances OP was being exchanged had lowered considerably.

The falling community progress, however, recommended that the variety of new addresses transferring OP had fallen.

  What number of OPs are you able to get for $1?

Optimism: State of the token 

Optimism would want to garner curiosity from new addresses to assist prop up its worth. Nevertheless, that appeared unlikely, as Optimism’s improvement exercise declined. This indicated that there can be fewer possibilities of new updates or upgrades that might entice new addresses.

Supply: Santiment

On the time of writing, Optimism was being traded at $0.946. Its worth had fallen by 8.87% over the past 30 days.

This prompted a decline in Optimism’s market cap dominance throughout the identical interval. At press time, OP had captured 0.02% of the general crypto market.

Supply: Messari