This Ethereum Layer-2 is on Fire – Here’s What That Means for ETH Price

cryptonews.com:

Ethereum layer-2 scaling solution Arbitrum, which is able to substantially increase transactions per second by batching transactions together off-chain into so-called roll-ups, is seeing explosive growth. Daily fees generated by the protocol on Thursday hit their highest level since June 2022 at nearly $300,000. That means Arbitrum ranks as the seventh highest cashflows generating crypto protocol according to Cryptofees.info.

The surge in fees generated has come hand in hand with a surge in the number of daily transactions taking place on the protocol of now more than 1 million per day. Indeed, the surge in transactions made headlines recently when Arbitrum transactions managed to exceed Ethereum network transactions on one day earlier this week. At the start of the year, daily Arbitrum transactions were in the 200,000 area.

Daily Active Addresses, seen as a good proxy for the number of daily active users on the protocol, have also surged to new record highs above 130,000 recently. That’s up from under 50,000 at the start of the year.

The number of unique addresses registered on the protocol continues to post impressive growth, and should soon surpass 3 million.

“Arbitrum is seeing aggressive growth in users/active users/transactions/revenue, led by wider adoption and the scale-up of DeFi and gaming applications on the chain,” commented analysts at Bernstein in a note earlier this week. Bernstein noted impressive growth in a number of Arbitrum-based decentralized exchanges, including GMX.

GMX recently surpassed $100 billion in all-time trading volume, according to DeFi Llama, most of which has taken place on Arbitrum. On Wednesday, daily GMX swap volumes on Arbitrum hit their highest last December at above $23 million.

Arbitru