Arbitrum [ARB] Leads Layer-2 with Impressive Growth and New Addresses in May 2024

• The cryptocurrency market has seen significant developments with Layer-2 scaling solutions in the spotlight.
• Arbitrum’s (ARB) price surged by 8%, whereas Optimism (OP) saw a sharp decline of over 10% within the last 30 days.
• The rapid growth of Layer-2 solutions has significantly impacted Ethereum’s network usage.

Explore the latest in Layer-2 cryptocurrencies with insights into market leaders and performance metrics.

Performance Metrics of Leading Layer-2 Solutions

Coin98 recently published an in-depth analysis of the top Layer-2 networks, showcasing Optimism (OP), Base, and Arbitrum (ARB) as market leaders based on total address counts. Optimism had 144 million addresses, Base had 75 million, and Arbitrum had 28 million.

Noteworthy is the rapid expansion of Base towards the end of the month, recording an impressive 742,000 new addresses created on the last day of May alone. Meanwhile, Blast stole the spotlight for growth, achieving a 39% increase.

Network Activity and Usage

In terms of newly created addresses in May, Arbitrum led with 6.4 million new addresses. Yet, network usage metrics exhibited different leaders. Coin98 revealed that opBNB recorded the highest transaction number last month, while Blast saw its transaction volume rise by 71%. Additionally, opBNB dominated transaction speed, maintaining the highest transactions per second rate.

The DeFi sector saw ARB, Blast, and Base excel again, as their Total Value Locked (TVL) metrics appreciated the most during the month.

Price Dynamics: ARB vs. OP

Among the Layer-2s, ARB and OP showed pronounced market activity. ARB’s price increased by over 8% last month, currently trading at $1.11 with a market cap surpassing $3.2 billion.

Conversely, OP faced bearish trends, seeing a price drop of over 10% in the same period. Optimism’s current trading price is $2.45, with a market cap exceeding $2.6 billion.

Market Sentiment Analysis

Despite ARB showing positive price growth, both ARB and OP tokens maintained weighted sentiments in the negative zone, indicative of prevailing bearish market sentiments. This divergence between price action and market sentiment underscores the complexity of investor behavior in the crypto markets.

Conclusion

Overall, the rapid advancements in Layer-2 solutions like ARB and OP reflect a dynamic shift within the cryptocurrency space, heavily influencing Ethereum’s operational metrics. With continuous growth and evolving network activities, investors and market watchers should stay informed to navigate the ever-changing crypto landscape effectively.