According to available data, Arbitrum (ARB) and Optimism (OP) – two prominent layer 2 scaling solutions for Ethereum have seen increased transaction activity this year.
Despite the positive trend in transaction volume, both networks have seen a decline in Total Value Locked (TVL) in recent days. Moreover, the value of their native tokens is also lower.
Trading on Arbitrum and Optimism is on the rise
According to recent analysis by IntoTheBlocktrading volume on leading Ethereum layer 2 solutions like Arbitrum and Optimism has quadrupled over the past year.
The spike in activity was particularly pronounced in the second quarter, following the integration of Ethereum Improvement Proposal (EIP) 4844.
EIP-4844 is designed to improve Ethereum’s scalability by introducing a new transaction type that processes data more efficiently, contributing to lower fees and higher throughput.
Further analysis from Growthepie It is pointed out that between the two, Arbitrum has seen more significant growth since the start of the new year.
Before this period of rapid growth, ARB transactions were under 1 million.
However, after March, the number of ARB transactions increased significantly, reaching more than 1 million and peaking at about 2.6 million transactions on June 26.
For comparison, OP saw a spike in early April, with the number of transactions surpassing 800,000, but has since dropped significantly.
As of writing, ARB maintains a high level of activity with over 1.5 million transactions, while Optimism’s transaction volume has dropped to over 409,000.
TVL on Arbitrum and Optimism declines
According to a report by DeFiLlama, the total value locked (TVL) on layer 2 solutions like Arbitrum and Optimism shows an initial increase followed by a decrease pattern.
TVL Arbitrum | Source: DeFiLlama
This trend is particularly evident with Arbitrum, as the network’s TVL rose to over $3.1 billion in March. This increase reflects a period of significant adoption and investment in the platform.
However, since then, TVL has dropped noticeably, with the latest figures showing it at around $2.8 billion.
Similarly, Optimism also increased its TVL, surpassing the $1 billion mark in March. However, like Arbitrum, the TVL has decreased with a current value of around $665 million.
The decline in TVL for both Arbitrum and Optimism could be due to a number of factors, including changes in investor sentiment, broader market conditions affecting the entire crypto ecosystem, or specific events in layer 2 networks.
ARB and OP face strong resistance
The price trends of both ARB and OP are on a downward trajectory.
Over the past few weeks, OP has increased its distance from the short-term moving average (MA), currently at around $2.2.
This gap shows that the $2.2 level is acting as a strong resistance point, implying that it is getting harder to break the barrier.
At the time of writing, OP is trading at around $1.8, up 3% over the past 24 hours.
OP Price Chart | Source: TradingView
Similarly, ARB also moved further away from its short-term MA, consolidating resistance at around $1. At the time of writing, ARB is trading at around $0.80, up 2% on the day.
ARB Price Chart | Source: TradingView
The growing distance from the resistance levels of both tokens signals that bearish sentiment is strengthening, suggesting that investors may be less optimistic about immediate upside moves.
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