Journalist
Posted:
- Nearly 60% of all transactions generated on Arbitrum last week were linked to Inscriptions.
- Users had to pay significantly less fees for inscriptions.
Layer-2 (L2) blockchain arbitrage [ARB] has experienced a surge in network activity in recent days.
According to an analysis company in the chain InHetBlokdaily transactions on the scaling solution reached a new all-time high (ATH) on December 16.
Source: IntoTheBlock
Inscriptions power Arbitrum’s on-chain traffic
Like a dune dashboard scanned by AMBCrypto, EVM Inscriptions, similar in concept to Bitcoin Ordinals, caused the spike in on-chain traffic.
Nearly 60% of all transactions generated on Arbitrum last week were linked to enrollment activity. This was higher than zkSync Era, another popular L2, where inscriptions accounted for 57% of total transaction activity.
Additionally, over 16% of all gas costs on Arbitrum last week were used for minting and trading inscriptions.
Inspired by Bitcoin’s BRC-20s, EVM chains began creating their token standard to write information, such as non-fungible tokens (NFTs), on the blockchain. One of the advantages of Inscriptions is that they are cheaper to move.
As of December 18, more than 1.2 million inscriptions were created through Arbitrum. However, users had to pay significantly less fees, approximately $551,640, for transactions related to inscriptions.
A test for Arbitrum
However, the frenzy brought with it a number of problems. On the day when transactions peaked, there was a brief outage in the network. As reported by AMBCrypto, the incident marked the first downtime in the network in the past 90 days.
However, Arbitrum quickly resolved the problem and the network was back up and running within two hours of the outage beginning. Nevertheless, the incident raised some questions about Arbitrum’s capacity.
ARB’s problems continue
In contrast to the Inscriptions mania on Arbitrum, native token ARB fell 3.39% during the week, according to CoinMarketCap.
Realistic or not, here is ARB’s market cap in BTC terms
Well, this could be because the asset does not generate any value from Arbitrum’s on-chain activity and only functions as a governance token.
Overall, the token was 90% done from the time of the much-hyped AirDrop.