- Revenue from sequencers on Optimism and Arbitrum has grown significantly over the past year.
- Optimism’s Bedrock Upgrade has resulted in an increase in daily network transactions.
Layer 2 (L2) networking Optimism [OP] and Arbitrum [ARB] have seen a rise in cumulative sequencer revenue over the past year, on-chain data platform Delphi Digital noted in a recent tweet.
Sequencers are entities or individuals responsible for creating and sending compressed summaries of transactions to the Ethereum mainnet. As more users and projects use Optimistic Rollups and migrate their transactions to Arbitrum and Optimism, the demand for sequencer services increases. This increased demand translates into increased revenue for these sequencers.
All credits belong to the users
On-chain review of network activity on Optimism and Arbitrum revealed that sequencer revenue growth had recently accelerated. This was due to the increasing adoption of layer-two solutions.
With a much larger share of the L2 market, the cumulative number of individual addresses on Arbitrum recently passed the 9 million mark, according to data from ArbiScan. As of July 8, there were 9.70 million unique addresses on the network.
However, the optimism lagged behind with a total of 6.26 million unique addresses, according to data from Ether scan.
The difference in the cumulative number of addresses on both networks is also reflected in the difference in the total value of locked assets (TVL) on each. With a TVL of $6 billion, Arbitrum controls a market share of 60.34% of the $9.49 billion held as cumulative TVL in the entire L2 market.
Optimism’s TVL was $2.14 billion at the time of writing, accounting for a 23% market share, according to data from L2Beat.
Source: L2Beat
Who has the upper hand?
Interestingly, a review of daily network activity on both protocols showed that daily transactions on Optimism were higher than Arbitrum. Dates from Nansen revealed that Arbitrum saw a significant increase in daily active addresses during its AirDrop event in March. However, since then there has been a steady decline in daily wallet activity.
In contrast, the number of daily active addresses on the Optimism network showed an upward trend in June. And that position held so far in Q3.
In terms of the number of completed transactions on both networks, Arbitrum saw relatively stable transaction activity in June, with no significant changes. However, Optimism experienced a strong increase in transaction volume during the same period. The increase in transactions on Optimism over the past month is mainly due to the introduction of ‘Bedrock’.
Source: Dune analysis
In early June, Optimism announced the launch of its Thorough upgrade. According to data from Dune analysisthe upgrade has enabled savings of nearly 75% on every transaction, attracting more users.