Layer-2 solutions like Arbitrum are designed to offer better scaling and cheaper fees. The network does a good job so far, with almost 2,500 ETH in gas used in the past three months. Interestingly, Sushiswap uses the most gas of all smart contracts, although Uniswap isn’t too far behind.
Arbitrum Is Booming
The overall DeFi momentum keeps stacking up for Arbitrum. After overtaking Polygon and Avalanche for Total Value Locked, the L2 solution now eyes Tron in third place. Overcoming the $2.5 billion TVL gap may be tricky, though. However, the network saw a 23.3% increase in liquidity this week, outperforming Tron’s 7.55%. Overall, excitement regarding decentralized finance is rising, which can have some interesting consequences.
Unlike other networks that have tried to dethrone Ethereum, BNB Chain, or Tron, Arbitrum has nearly 200 protocols. That may make the $3.05 billion in TVL seem relatively minor. However, as documented earlier this week, the network is home to over a dozen native decentralized exchanges. Those platforms always attract substantial liquidity as users want tokens and trading fees whenever possible.
Speaking of decentralized exchanges, those protocols are the biggest gas consumers on Arbitrum. However, the consumption primarily comes from the migrated DEXes, including SushiSwap, Uniswap V3, and OneInch. The native DEX platforms have yet to gain broader traction. Alternatively, their contracts may be better optimized to take advantage of Arbitrum’s lower fees and higher throughput.
Other big gas guzzlers on the network include Circle, Odos, Project Galaxy, GMX, and Gains Network. It is worth noting Circle’s ArbFiatToken has almost as many transactions as Sushiswap’s UniswapV2Router02 contract. However, Circle uses under 40% of the ETH in gas compared to Sushi. That lends some credibility to a lack of contract optimization here and there.
Gas Prices Remain Unchanged
The increasing network activity would likely affect Arbitrum gas prices. However, that is not necessarily the case, as the daily average gas fee and gas price don’t deviate much. More specifically, the daily average gas price – in gwei, remains at 0.1, with some more significant spikes to 0.11. That indicates a very healthy overall network that can scale well regardless of overall activity.
In addition, the average daily gas used has risen strongly since late November 2022. It hovered near 450,000 Wei in November and surpassed 1.32 million Wei a few days ago. While activity has calmed down a bit since it remains near the 1 million Wei mark relatively easily. Overall, Arbitrum continues to note good growth and activity,
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