Arbitrum leads the L2 space, but what about ARB?

• Arbitrum has an average daily transaction count of around 760,000.
• However, ARB fell off the $1 price range.

Arbitrum [ARB] has become the leading Layer 2 (L2) network in transaction volume over the past 30 days. However, despite its high transaction numbers, it has yet to secure the top position in terms of fees.

Arbitrum leads in average daily transactions

AMBCrypto’s analysis of DefiLlama’s transaction chart revealed a surge in transaction numbers over the past few weeks. This took the overall transaction count of Arbitrum beyond that of other L2 solutions.

Moreover, a recent AMBCrypto report highlighted a daily transaction count of over 2.8 million on Arbitrum. This marked the second-highest transaction volume in the history of the blockchain.

According to CryptoRank, the network has been averaging around 760,000 daily transactions. 

Furthermore, DefiLlama’s chart showed an improvement in Total Value Locked (TVL) over the last 30 days. The TVL was over $2.1 billion at the time of this report, with a noticeable upward trend.

In addition to the transaction and TVL growth, there has also been an uptick in the number of addresses on Arbitrum in recent weeks, although it has not reached the levels seen earlier in 2023.

Comparing the TVL

AMBCrypto’s examination of the Total Value Locked (TVL) ranking on L2 Beats revealed that Arbitrum maintained its dominance with the largest market share. This indicated that the network has the highest volume of liquidity locked in, surpassing 51% at the time of this assessment.

Also, one contributing factor to this significant TVL market share was its native token, ARB. The presence of this token facilitated liquidity onto the network.

Interestingly, the second-largest market share in terms of TVL belonged to Optimism [OP], with a 29% share. Notably, like Arbitrum, Optimism’s native token, could also play a role in the latter’s quest to capture a considerable share of the TVL.

Read Arbitrum’s [ARB] Price Prediction 2023-24

ARB rests on key support level

Reviewing the daily timeframe chart for Arbitrum indicated a recent downtrend over the past few days. Consequently, it dropped below the $1 price level. As of this writing, it was trading at around $0.99, reflecting a decline of over 2%.

The short moving average, represented by the yellow line, was acting as support at around $0.97 during press time. However, a continued decline in value may lead to ARB breaking below this support level.

Source: TradingView