Optimism and Arbitrum: More Successful Than Other Sidechain Projects
Optimism and Arbitrum, which are Layer 2 projects, have been more successful than other sidechain projects.
Ethereum's recent technical upgrade to the proof-of-stake consensus model is a major accomplishment that has taken six years of work to achieve. However, post-merge activity on layer-2 has dropped off significantly. This is a cause for concern as Ethereum's transition to proof-of-stake could be hampered if layer-2 activity does not pick up soon.
The recent stats from Dapp Radar show a significant decline in both unique active wallets and transactions, as well as a drop in Ethereum's TVL. This trend is cause for concern, and it remains to be seen what impact this will have on the crypto market as a whole.
“Due to the high economic uncertainty and current macroeconomic landscape, and taking into consideration that the merge wasn’t a huge scaling event but only a tiny step in the Ethereum roadmap, the indicators are showing us that the Merge hadn’t had this huge impact people expected.” – reads the post.
Activity in Polygon Dampens Ronin
The sidechain protocol known for executing cheaper fees and much faster transaction rates also saw the same descending trend as Ethereum. The FOMO-fueled pre-Merge enthusiasm pushed transactions by 6.5% and unique active wallets (UAW) by 4% higher from June to August 2022 on Polygon. Despite the descending trend, the protocol still managed to see an increase in activity due to the FOMO around the potential merge with Ethereum. This highlights the potential of the protocol and its ability to scale in the future.
The decrease in Bitcoin transactions and unique active wallets in September shows that the hype around the cryptocurrency may be fading. However, it is still too early to say whether this is a trend or a blip.
Ronin, a sidechain of Ethereum and the backbone of Axie Infinity, has seen a decrease in transactions and unique active wallets of 51% and 54%, respectively, since August 2022. While this is unfortunate, it does not spell the end for Ronin or Axie Infinity. The team is committed to continue working hard to improve the platform and make it the best it can be. With the right support, Ronin and Axie Infinity can still be successful.
Optimism and Arbitrum Stand Out in a Good Week for Cryptocurrencies
It is clear that Optimism is a protocol on the rise, despite some dips in activity compared to the previous month. These dips are to be expected, given the current market conditions (i.e. the 'crypto winter'). However, what is impressive is the increase in activity that Optimism has seen over the past month, with a 194% increase in transactions and a 275% increase in unique active wallets. This makes Optimism one of the best-performing protocols during this difficult time for the cryptocurrency market.
It is clear that the TVL of this company has seen a significant increase over the past few months. This is most likely due to the success of their recent products and marketing campaigns. However, it is worth noting that there was a slight decline in TVL in September. This could be due to seasonal factors or a change in consumer behavior.
The Arbitrum project has been a bright spot during the bear market, with transaction volume increasing by 54.7% from August to September. Additionally, its total value locked (TVL) rose by 2% in September to approximately $979 million. This shows that the project is continuing to gain traction and could be poised for even more growth in the future.
It's been a little over a week since the big Ethereum merge happened and things have been pretty quiet on the ETH front. Some were expecting a big price surge after the merge, but that hasn't really materialized.
