Two key Layer-2 solutions for Ethereum, Arbitrum (ARB), and Optimism (OP), witnessed a substantial surge in transaction activities throughout the year. Data from IntoTheBlock revealed a fourfold increase in transaction volume on both networks over the past year, notably accelerated after the integration of Ethereum Improvement Proposal (EIP) 4844. This proposal, designed to enhance Ethereum's scalability, introduced a more efficient transaction type to process data.

Transaction Volumes of Arbitrum and Optimism

An analysis by Growthepie highlighted Arbitrum's remarkable growth compared to Optimism from the onset of the year. Initially below 1 million, ARB transactions surged after March, reaching a peak of about 2.6 million transactions on June 26. On the contrary, Optimism encountered a surge in early April with transactions surpassing 800,000 but has since witnessed a significant decline. Presently, ARB conducts over 1.5 million transactions, whereas Optimism's transaction count has dwindled to around 409,000.

Decline in Total Value Locked (TVL)

Despite the spike in transaction volumes, the Total Value Locked (TVL) on both platforms has seen a decline. In March, Arbitrum's TVL exceeded $3.1 billion, indicating substantial adoption and investment. However, recent data shows a decline to approximately $2.7 billion. Similarly, Optimism's TVL crossed the $1 billion mark in March but has dropped to around $665 million. These dips might stem from shifts in investor sentiment, general market conditions, or specific events within the Layer-2 networks.

Decline in ARB and OP Prices

The prices of both ARB and OP tokens have exhibited a downward trajectory. OP encountered strong resistance at the $2.2 level, currently trading at about $1.7 with a slight uptick. In comparison, ARB established its resistance around $1 and is presently trading at around $0.7, showing a marginal increase. The failure of these cryptocurrencies to meet expectations has resulted in investor disillusionment and waning confidence in the projects, evident from their price levels.