Arbitrum transaction activity explodes 550% since August: Delphi Digital

Following the Nitro upgrade, activity on Arbitrum has increased to nearly two-thirds of observed transaction activity on the Ethereum base layer. New

Layer 2 Ethereum scaling solution Arbitrum has seen a massive increase in activity since its Nitro update in August, having seen around 62% more transactions than the Ethereum base layer.

In a Nov. 1 report, crypto research firm Delphi Digital noted that as of the end of the week of Oct. 24, total Arbitrum trades had increased 550% since August, citing data from Dune Analytics.

This week, @arbitrum saw about 62% more transactions than Ethereum L1. pic.twitter.com/DyuDNAjRGz

In a previous Tweet, Delphi Digital originally formulated Arbitrum as representing 62% of all transactions on Ethereum, which they later clarified to be an "incorrect formulation".

Arbitrum is an optimistic roll-up built by blockchain development company Offchain Labs, aimed at scaling Ethereum smart contracts. It uses Optimistic Rollup technology to aggregate large batches of off-chain transactions from Ethereum smart contracts and decentralized applications before submitting them to Ethereum.

A number of well-known protocols use Arbitrum, such as the decentralized exchanges SushiSwap, Uniswap and GMX, the Aave lending protocol and the Stargate liquidity transport protocol. According to L2Beat, at the time of writing, its Total Value Locked (TVL) is currently $2.59 billion.

Delphi analysts noted that weekly active users have increased on Arbitrum, growing 125% since October 10 to reach a new high of 282,000 in the week ending October 24.

Analysts also suggest that much of the rise in activity is likely due to speculation...